Canada: CRA Income Tax Filing Requirements – Requirement to File Partnership T5013 Information Return

Last Updated: February 14 2018

Introduction – Partnership T5013 Information Return

Partnerships are a form of business organization that exists when persons carry on a business in common with a view to profit. Unlike corporations, they are not separate legal entities, but instead a relationship that subsists between the persons, called partners. Under the Canadian Income Tax Act, partnerships are not treated as entities that are required to pay taxes. Instead, all of the income or losses of the partnership are allocated to the partners, who then include their share of the partnership’s income or losses in their own income and pay the appropriate amount of tax. That partnerships are not required to pay taxes does not mean that they do not have income tax filing requirements. Certain partnerships are required to file a T5013 partnership information return each year with the Canada Revenue Agency (the “CRA”). The Canadian Income Tax Act in section 162 also authorizes the CRA to apply penalties to partnerships which failed to file their T5013 information return when they were required to do so.

Requirement to File - Partnership T5013 Information Returns

The Canadian Income Tax Regulations in section 229 require that every member of a partnership must file a partnership information return for a fiscal period of the partnership when during that fiscal period the partnership carried on business in Canada, was a Canadian partnership, or was a specified investment flow-through partnership (a “SIFT partnership”). The fiscal period of a partnership is the business year of the partnership for Income Tax purposes. As with the taxation year of a corporation, the fiscal period of a partnership does not necessarily match the calendar year, and is, except in special circumstances, one year long.

A Canadian partnership is a partnership in which each partner is a resident of Canada. A SIFT partnership is a partnership which is resident in Canada, is publicly traded, and holds at least one non-portfolio property. A non-portfolio property is any property that meets at least one of the following three criteria. First, a Canadian real, immovable or resource property is a non-portfolio property if at any time in the partnership’s fiscal period, the total fair market value of all Canadian real, immovable or resource properties held by the partnership is greater than 50% of the equity value of the partnership. Second, a property that the partnership or a person or partnership that the partnership does not deal with at arm’s length uses in the course of carrying on a business in Canada is a non-portfolio property. Third, a security of a subject entity that is not a portfolio investment entity is a non-portfolio property if the partnership holds securities of the subject entity with a total fair market value greater than 10% of the equity value of the subject entity or greater than 50% of the equity value of the partnership. A subject entity is a person or partnership that is a corporation resident in Canada, a trust resident in Canada, a Canadian resident partnership, or a non-resident person or partnership whose principal source of income is one or any combination of sources in Canada. A portfolio investment entity is an entity that does not hold any non-portfolio properties. If you have questions about whether your partnership falls into one of these three categories, please consult one of our experienced Toronto tax lawyers.

The T5013 partnership information return requires members of the partnership to report to the Canada Revenue Agency the partnership’s income or loss for the fiscal period, identity information about each partner, each partner’s share of the income or loss of the partnership, and each partner’s share of any deduction, credit, or other amount relevant to determining the partner’s taxable income or tax payable under the Canadian Income Tax Act.

The deadline to file the T5013 partnership return is determined by the composition of the partnership. If a partnership has only individuals as partners, then the partnership’s information return must be filed on or before the last day of March in the calendar year immediately following the calendar year in which the partnership’s fiscal period ended. If all of the members of a partnership are corporations, then the partnership information return must be filed within 5 months of the end of the partnership’s fiscal period. For all other partnership, the earlier of the two dates mentioned above is the deadline for filing the partnership information return.

CRA Exceptions to Filing Requirement – T5013 Partnership Information Returns

The CRA’s administrative policy relieves certain partnerships of their obligation to file income tax returns. Most importantly, the Canada Revenue Agency does not require an information return to be filed for partnerships for a fiscal period if at the end of the period the sum of the absolute value of the partnership’s revenue and the absolute value of the partnership’s expenses is less than two million dollars and the partnership has less than five million dollars of assets.

Despite this administrative exemption, the CRA still requires partnerships that meet certain criteria to file information returns even if they are under the revenue/expense and asset tests mentioned above. For example, the Canada Revenue Agency requires every partnership which has a corporation or a trust as a partner to file a partnership information return. The CRA also requires all tiered partnerships to file partnership information returns. A tiered partnership is any partnership which has a partnership as a member or which is a member of a partnership. Certain partnerships which have invested in flow-through shares are also required to file an information return. In addition, if the Canada Revenue Agency requests that a partnership file a T5013 partnership information return, they are required to file the information return even if they would otherwise be exempt under the administrative policy. If you are unsure if this exemption applies to your partnership, please consult with one of our expert Toronto tax lawyers.

Failure to File Penalties – T5013Partnership Information Returns

If a partnership fails to meet its obligation to file its information return on time, it is subject to a penalty equal to the greater of $100 and $25 per day the partnership is late in filing its return up to a maximum of 100 days. Partnerships which repeatedly fail to file or fail to file on time can be subjected to higher penalties. If the CRA issued a demand to the partnership for the T5013 partnership information return or the information contained in the return and the partnership was subject to penalties for failing to file its information return on time for any of its three preceding fiscal periods, it will be subjected to increased penalties. Specifically, the partnership will be subjected to an additional penalty of $100 per month for each month or part of a month after the deadline where it has not filed its return, up to a maximum of 24 months. This leads to a maximum penalty amount of $4,900 for a single failure to file a partnership information return on time. The Canada Revenue Agency will also charge interest on these penalties.

Tax Tips – T5013Partnership Information Returns

The penalties for extended periods of non-compliance with the obligation to file a partnership information return can be very significant. This makes it important for members of a partnership to determine whether they are subject to the filing obligation. If you discover you are a member of a partnership which is not compliant with its partnership information return filing obligations, then you may be able to obtain relief through the voluntary disclosures program . The voluntary disclosures program offers relief to taxpayers who apply for relief through the program before being contacted by CRA and who meet certain other criteria. If a voluntary disclosure is accepted, then the Canada Revenue Agency will provide penalty relief and partial interest relief. If you are interested in pursuing a voluntary disclosure for your partnership, please contact one of our top Toronto tax lawyers.

There are advantages to filing a partnership information return even if your partnership is exempt from the obligation due to the CRA’s administrative policy. The Canada Revenue Agency has the power to audit partnerships and make binding determinations about the income, losses, or other tax amounts of a partnership, which then effect the tax positions of all the members of the partnership. There is however, a limitation period on the CRA’s ability to issue these determinations. The Canada Revenue Agency can only issue a determination for a fiscal period of a partnership within three years of the later of the day the partnership’s filed its partnership information return and either the partnership’s deadline for filing the information return or the day that would be the partnership’s deadline for filing the information return if it were not exempted from filing by the CRA’s administrative policy. This means that partnerships which are not required to file partnership information returns still benefit by doing so, since it starts the limitation period for the Canada Revenue Agency to issue a determination.

The information is thought to be current to date of posting. Income tax law changes frequently and content may no longer reflect the current state of the law. This document is not intended to create an attorney-client relationship. You should not act or rely on any information in this document without first seeking legal advice. This material is intended for general information purposes only and does not constitute legal advice. If you have any specific questions on any legal matter, you should consult a professional legal services provider.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Contact the Author?
Click here to email the Author
In Association with
In Partnership with
Other Canada Advice Centers
Competition and Antitrust
Mergers and Acquisitions
Labour and Employment
More Advice Centers
Useful Resources
Forms available to download for income tax filing in Canada.
Hear David J. Rotfleisch discuss timely and highly topical tax matters during appearances and interviews with specialist publications.
Useful explanatory videos of income tax matters.
The following questions and answers are based on the proposed measures that were announced on December 7, 2015.
The official Government website of the CRA.
This guide is for any person who deals with the Canada Revenue Agency (CRA). The guide gives you information on the 16 rights set out in the Taxpayer Bill of Rights and explains what you can do if you believe that the CRA has not respected your rights.
The Office of the Taxpayers' Ombudsman (OTO) works to enhance the Canada Revenue Agency's (CRA) accountability in its service to, and treatment of, taxpayers and benefit recipients through independent and impartial reviews of service-related complaints and systemic issues.
Ontario personal income tax is an annual tax collected from individuals who are Ontario residents on the last day of the tax year or have income earned in Ontario for the tax year.
The following documents provide instructions for filing your 2015 income tax return.
If you earned income in B.C. or operated a Corporation with a permanent establishment in B.C. last year you need to file an income tax return. Find out when you need to file your income tax return, and if any tax credits or rebates apply to you.
Generally, a corporation must file an Alberta corporate income tax return (AT1) for each taxation year during which it has a permanent establishment in Alberta.
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions