- Partnership Waivers
- April 2, 2012
- Law Firm: Miller Thomson LLP - Toronto Office
The Tax Act provides that the CRA may for a fiscal period of a partnership make a determination or redetermination under subsection 152(1.4) of the Tax Act of any income, loss, deduction or other amount in respect of the partnership. The CRA is precluded from determining an amount if more than 3 years have elapsed since the later of the deadline for filing the relevant partnership information return and the day the return is actually filed.
However, if the CRA obtains a waiver from each partner, the time period for making a determination is extended. If one or more of the partners does not provide a waiver, the period cannot be extended and the CRA will have to make a determination using only the information that is available to it at that time.
Under the current rules, the members of a partnership may designate a partner with authority to file an objection on behalf of all of the partners, to a determination under the Tax Act.
The Budget proposes that a single designated partner of a partnership may also be empowered to waive, on behalf of all of the partners, the 3-year time limit for making a determination.
This proposed measure will apply on Royal Assent to the enacting legislation.