In February 2012, the Canada Revenue Agency (CRA) expanded the information requirements for partnership returns. Although the new requirements were to apply immediately, the CRA provided temporary administrative relief in response to consultations with tax compliance preparers. While the relief is certainly welcome, the need for increased disclosure has only been deferred—not eliminated.
The CRA recently issued a revised version of T5013 SCH 50. Unlike its predecessor, the new schedule, entitled “Partner’s Ownership and Account Activity,” requires disclosure of:
The CRA also released a new form T5013 SCH 9, entitled “Affiliated Corporations, Partnerships, Partners or Trusts,” which requires disclosure of information on persons affiliated with the partnership.
The additional disclosure significantly increases the compliance burden for partnership filers, particularly for those with a short transition period. In response to concerns, the CRA announced on February 29, 2012, that it will accept returns containing either the 2010 or 2011 version of schedule 50 if the return:
The CRA also recognizes the increased demands imposed by the new schedule 9, and recommends that this schedule be prepared based on the best knowledge and ability of the partnership and preparer.