CRA’s new policy update for T5013 also creates issues for family farm partnerships

Canada Revenue Agency (CRA) has updated its partnership information returns policy, which has affected family farm partnerships.

CRA’s new policy regarding the filing exemption for partnerships has also created compliance issues for family farm partnerships.

Under the policy, if the total of a partnership’s revenue and its expenses, as absolute amounts, exceeds $2 million, then T5013 Partnership Information Returns (PIRs) must be filed. Due to the structure of family farm partnerships, many operations that would not otherwise have been considered large will meet this test, and face new tax filing obligations as a result.

BDO raised this issue with CRA and Agriculture and Agri-Foods Canada in a recent submission. BDO also called on these government bodies to modify the rules to meet the special circumstances of family farm partnerships.

This document was originally prepared by a legacy CPA organization.