a) If two Canadian corporations with CFAs amalgamate, would CRA consider extending its administrative relief re the avoidance of duplicative filings as a result of the resulting deemed year-end arising from the amalgamation?
b) Assume Canco1 transfers CFA1 to Canco2 mid-year. Would CRA consider extending its administrative relief to situations where multiple Canadian taxpayers or partnerships in a related group are required to file a T1134 for the same FA as a result of its transfer(s) within the group?
c) When can T1134 forms and attachments be filed electronically?
CRA’s responses are summarized below:
(a) CRA cannot provide that administrative relief, which could diminish the accurate history that the reporting was meant to provide. However, the T1134 supplements to be filed by the amalgamated corporations would require limited to no information in various areas of that supplement. For example, Section 3 of Part 2 of the supplement, and Sections 1-4 of Part 3 of the supplement, specifically refer to taxation years of the affiliate ending before the entity’s taxation year, whereas here the amalgamation would not cause a year-end for the foreign affiliates.
(b) Where multiple Canadian-resident taxpayers or partnerships in a group own a particular foreign affiliate for a moment in the year, but only one in the group owned the shares at the end of the tax-year, not having each owner file a T1134 for the FA would diminish the transparency of the offshore structures, which frustrates one of the purposes of the form.
(c) Electronic filing of T1134s, and T106 returns by mid-2017 is anticipated. Transmission of supporting financial documentation is still being worked on.