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".
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.