Who has to file a partnership information return? 

Under subsection 229(1) of the Regulations, all partnerships that carry on business in Canada or are Canadian partnerships or specified investment flow-through (SIFT) partnerships must file a partnership information return.

Who is responsible for filing? 

Once you determine that your partnership has to file a return, each member of the partnership is responsible for making sure that a return is filed for each fiscal period of

the partnership.

Multiplication of the small business deduction

In general terms, the small business deduction that a Canadian-controlled private corporation (CCPC) that is a member of a partnership can claim in respect of its income

from the partnership is limited by the specified partnership income (SPI) rules to the lesser of the active business income (ABI) that it receives as a member of the partnership (its “partnership ABI”) and its pro-rata share of a notional $500,000 business limit for the partnership (its “SPI limit”). A CCPC’s specified partnership income is added to its active business income from other sources, if any, and the CCPC can generally claim the small business deduction on the total (subject to its annual business limit). 

Due dates 

The due date for filing an annual return depends on the type of partners, including end members of a tiered partnership. 

1. March 31 after the calendar year in which the fiscal period of the partnership ended if, throughout the fiscal period that all partners are individuals, including end members

   of tiered partnership, and investment clubs that file on the modified-partnership basis. We consider a trust to be an individual.

2. 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.
3. 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 

US & Canada Tax - Lily Lo CPA Professional Corporation - Edmonton, Alberta