Section B – Tax shelter information

1. The tax shelter property is:

Tick () the appropriate box, and enter the information required about that selection in the space provided:

• If the tax shelter property is an interest in a partnership, and there are more than two activities relevant to the operation of the tax shelter, enter the description that best describes the principal operation of the tax shelter. Enter the North American Industry Classification System (NAICS) code in the space provided. Use the appropriate NAICS code from the Industry Canada website (search "NAICS codes").

• If you tick "Other," specify the type of organization or structure in the space provided.

2. Details of tax shelter investment units:

Date to be offered for sale – Enter the date you propose to offer the tax shelter investment units for sale.

Tax shelter units and price – Enter the information for the proposed number of units, proposed price, and amount you expect to raise.

3. Is there a pre-arranged loan with this tax shelter?

Tick () the appropriate box.

If you answer yes, you have to complete Section E – Financing information.

4. Designated calendar year of tax shelter sales

Enter the calendar year for which the identification number is to be valid for sales of interests in this tax shelter. A person may sell, issue, or accept consideration in respect of a tax shelter only for the calendar year designated as being applicable to the identification number.

5. Expected deductions in the first four years to the purchaser of a minimum investment unit in the tax shelter:

Code – Enter the code from the Deduction codes list for the largest deduction (in dollar terms) represented as being potentially allowable to an investor in the tax shelter.

Years 1 to 4, and Total – In the space for each of the first four years, enter the dollar amount of gross deductions to the purchaser of a minimum investment unit in the tax shelter. Enter the total amount of the gross deductions in the designated space.

6. Entitlements to amounts or benefits with respect to the investment in this tax shelter:

Tick () the appropriate box.

If you answer yes, you have to complete Sections F and M. For Section F – Entitlement to amounts or benefits, list the name of the entity providing the entitlement or benefit, their complete address, and indicate whether they are at arm's length with the principal promoter by ticking yes or no. For Section M – Summary of arrangements, you have to describe the nature of any amount or benefit listed, including the timing, the parties involved, and whether they deal at non-arm's length with the buyer or the promoter.

For more information about the amounts and benefits, see:

• subsection 96(2.2) for the partnership at-risk rules;
• section 143.2 for the limited-recourse and tax shelter at-risk rules;
• section 3100 of the Income Tax Regulations for the definition of prescribed benefit; and
• the Income tax folio S1 F5 C1: Related Persons and Dealing at Arm’s Length.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T5001, Application for Tax Shelter Identification Number and Undertaking to Keep Books and Records
• Income tax folio S1 F5 C1, Related Persons and Dealing at Arm’s Length

Date modified:

2016-03-04