this exception for farm partnerships

In 2013, CRA announced an exemption from the filing of the Partnership Information Return (Form T5013) for family farm partnerships in which all partners are individuals (see VTN 388(6)). The exemption applied for 2013 and 2014, with a decision regarding subsequent years promised at a later date.

The CRA website indicates that this exemption continues for 2015, and notes CRA “will make a decision regarding the T5013 return filing requirements for farm partnerships for 2016 and later fiscal years after we analyze our data and consult with stakeholders”. This was the same phrasing used previously with respect to “2015 and later years”. The website also notes that a farm partnership with a partner which is a Trust or a Corporation must still file a T5013 return.

Editors’ Comment
Where a partnership return is not filed, the period in which CRA can reassess the partners never expires (Subsection 152(1.4)). This often motivates partners to file a return despite CRA waiving the requirement. CRA has indicated such a return would not attract penalties for filing after the due date (see VTN 402(10)).