A partnership return is not an income tax return; it is an information return that provides the partners of a partnership the information they need to report their share of their partnership income on their tax returns. Partners can be individuals, corporations, other partnerships, or trusts.
Partnerships that carry on business in Canada and Canadian partnerships must file a partnership information return if:
- At the end of the fiscal period, the partnership has an absolute value of revenues plus an absolute value of expenses of more than $2 million 1, or has more than $5 million in assets 2; or
- At any time during the fiscal period:
- The partnership is a tiered partnership (has another partnership as a partner or is itself a partner in another partnership).
- The partnership has a corporation or a trust as a partner.
- The partnership invested in flow-through shares of a principal-business corporation that incurred Canadian resource expenses and renounced those expenses to the partnership.
- The Minister of National Revenue requests the return in writing.
- The absolute value of a number refers to the numerical value of the number without regard to its positive or negative sign. To determine if a partnership exceeds the $2 million threshold, add total worldwide expenses to total worldwide revenues rather than subtract expenses from revenues as you would to determine net income.
- The cost figure of all assets worldwide, both tangible and intangible, without taking into account the depreciated amount, should be used to determine whether a partnership meets the “more than $5 million in assets” criterion.
T 5013 Deadlines
- March 31 after the calendar year in which the fiscal period of the partnership ended, if throughout the fiscal period:
- All partners are individuals, including end members of a tiered partnership, and investment clubs that file on the modified partnership basis. A trust is considered to be an individual.
- Five months after the end of the partnership’s fiscal period if, throughout the fiscal period:
- All partners are corporations, including end members of a tiered partnership.
- In all other cases, the earlier of:
- March 31 after the calendar year in which the fiscal period of the partnership ended.
- The day that is five months after the end of the partnership’s fiscal period.