Important News For Partnerships

Reproduced from CCH Tax Topics Newsletter:

The Canada Revenue Agency has revised the returns, forms, and schedules that make up the partnership information return for 2011. The changes reflect the new requirements for filing a partnership information return starting for fiscal periods ending in 2011. As set out in T4068, Guide for the Partnership Information Return, four new forms have been added to the T5013, three previous forms are no longer in use, and several other forms have been changed. The 2011 version of T5013, Schedule 50 has been completely redesigned from the 2010 version. It is now called Partner’s Ownership and Account Activity. Schedule 50 requires information on each partner’s adjusted cost base (“ACB”) of the partnership interest and the at-risk amount (“ARA”). On February 29, 2012, the CRA announced that it recognizes that preparers of the information return may have a difficult time supplying the information required in Schedule 50 and that a transition period is required. The CRA stated the following:

To ease concerns about providing updated ACB and ARA information, we will accept returns filed by the due date if they contain either the 2010 or 2011 version of schedule 50 with complete information on partner identification and the annual transactions between partners and the partnerships.

The CRA will not impose penalties on T5013 returns for 2011 fiscal periods as a result of incomplete ACB and ARA information on the schedule 50. We want to assure partnerships and tax preparers that penalties for incomplete returns are not intended to be applied on T5013 returns filed for 2011 fiscal periods that have been completed, to the best knowledge and abilities of the partnerships and preparers, by the filing deadline.

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