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SR&ED Forms Must Now be Filed with Partnership Information Return - by Carlo Ciaramitaro 

Canadian Tax Adviser

April 24, 2012

 

Carlo Ciaramitaro
Canadian & Americas R&D Incentives Practice Leader

 

An eligible partnership that has a corporation as a member must file a completed Form T661, "Scientific Research and Experimental Development (SR&ED) Expenditures Claim" with its T5013, "Partnership Information Return", under the new filing requirements for partnerships. The new requirements for filing a partnership information return apply to partnerships with fiscal periods ending on or after January 1, 2011.

The CRA says it will no longer allow a corporation that is a member of a partnership to file Form T661 for the partnership along with its T2 Corporation Income Tax Return. In addition, investment tax credits allocated to corporations by partnerships must now be supported by completing Form T5013, "Statement of Partnership Income".

 

Background
In 2010, the CRA announced that it was changing its administrative policy that exempts partnerships with five or fewer members from filing an annual partnership information return and instead introducing a new exemption based on a financial activity threshold or the type of partnership.

 

Effective January 1, 2011, a partnership that has a corporation or trust as a partner must file Form T5013 for each fiscal period of the partnership.

 

For more information, contact your KPMG adviser.

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