The partnership with three principal partners (Partners 1, 2 and 3, all corporations) filed its T5013 for 2012 without the Minister making a determination or issuing a Notice of Determination under to the partnership within the three-year period required by s. 152(1.4). Following that period, an amended T5013 was filed requesting an increase in capital cost allowance and cumulative eligible capital deductions, so as to change the partnership’s reported income to a loss for 2012. CRA made no such determination.
The partners requested that their respective 2012 returns be amended to reflect their share of the partnership loss. CRA only accepted this request for Partner 2 whose taxation year (unlike Partners 1 and 3) was not statute-barred.
Was CRA required to accept the request to amend the T5013? The Directorate responded:
In situations where the Minister has not made a determination and the three-year limitation period in subsection 152(1.4) has expired, the Minister may only make a determination in respect of the partnership where one of the exceptions in subsection 152(4) applies, which would include a waiver filed under subparagraph 152(4)(a)(ii) within the three-year period provided by subsection 152(1.4).
In general, where an amended T5013 is received beyond the three-year period provided by subsection 152(1.4), the Minister is not obligated to accept it. … Any notification sent to the partnership in this circumstance would merely be an acknowledgement that the information has been received and recorded. However, the Minister may use the information contained in the amended T5013 to reassess one or more of the partners provided that the taxation year of the particular partner or partners is not statute-barred. …
[T]he Minister may reassess the return of income of a member of a partnership without making a determination of the partnership under subsection 152(1.4) of the Act provided the partner’s particular taxation year is not statute-barred. … Accordingly … the Minister had the authority to issue the reassessment for Partner 2.