The new ATP reporting regime generally takes effect for "reportable transactions" entered into after 2010 or to a series of transactions completed after 2010. Generally, a reportable transaction is an avoidance transaction or a series of avoidance transactions (as defined for purposes of GAAR in subsection 245(3) of the Act) if two of three hallmarks are present:
- Contingent fees
- Confidentiality protection
- Contractual protection.
Reportable Transaction Information Return Form RC312
A separate form RC312 must be filed for each reportable transaction. The form must be filed separately from the taxpayer's income tax return. If the form is not filed, the taxpayer will not be able to obtain any tax benefit from a reportable transaction until the transaction is reported and, if applicable, a penalty is paid.
Form RC312 includes 12 parts:
- Part 1 - Taxpayer identification
- Part 2 - Name and date of the reportable transaction
- Part 3 - Disclosure of applicable hallmarks
- Part 4 - Information on the person completing the return
- Part 5 - Authorized representative identification (if applicable)
- Part 6 - Information on the person who entered into the transaction for the benefit of the taxpayer (if applicable)
- Part 7 - Information about the advisor(s) or promoter(s) (if applicable)
- Part 8 - Information on other parties involved in the transaction
- Part 9 - Detailed description of all the facts of the transaction and tax consequences
- Part 10 - Detailed description of any remaining steps and tax consequences
- Part 11 - Value of the tax benefit or the impact on income
- Part 12 - Number of taxpayers that entered into this type of transaction (to be completed by advisors and promoters).
For more information, contact your KPMG adviser.
Information is current to July 30, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500