| 19(1) | File No. 5-8340 |
| D. Turner | |
| (613) 957-2094 |
November 7, 1989
Dear Sirs:
Re: Income Tax Forms T1-CP Summary and Supplementary
We are writing in reply to your letter of July 6, 1989 concerning the filing of the T1-CP Summary and Supplementary Income Tax forms.
In your letter, you have outlined a hypothetical situation in which a partnership resident in Canada acquired an interest in a certified production. The partnership contained one general partner and several limited partners. The principal photography or taping of the production commenced in 1987 and was completed not later than 180 days after the end of the year. You have requested our opinion as to whether for purposes of section 225 of the Income Tax Regulations (the "regulations"), a separate Form T1-CP "Statement of Certified Productions" should be addressed to each of the limited partners or instead whether one global Form T1-CP should be directed to the limited partnership.
Our Comments
In our opinion, the partnership has invested in the certified production and therefore section 225 of the Regulations requires that a T1-CP be issued to the partnership. The partners have invested in the partnership and not the certified production, therefore they will not receive individual T1-CP's.
As an individual partner will not have an individual T1-CP for use when filing his personal Income Tax return, he should include in his return at the time of filing, a copy of the partnership's financial statements. The financial statements should show the T1-CP amounts which have been allocated to the partner and provide the registration number of the T1-CP which was issued to the partnership.
New draft Regulations require certain partnerships to file yearly partnership information returns starting March 31, 1990. Where information returns are filed by the partnership, the partners are no longer required to include a copy of the partnership's financial statements in their Income Tax returns. In these situations, the partner should include a photocopy of the partnership's T1-CP in his return and a schedule indicating the amounts which are allocated to him.
We trust that our comments will be of assistance.
for DirectorBusiness and General DivisionSpecialty Rulings DirectorateLegislative and IntergovernmentalAffairs Branch