Mandatory or Preventive Disclosure
The following transactions are subject to mandatory disclosure:
- confidential transactions, transactions involving conditional remuneration and transactions involving contractual coverage where any of those transactions result (either directly or indirectly) in a tax benefit of $25,000 or more for each member of the partnership or have an impact of $100,000 or more on the partnership's income;
- specified transactions.
Each member of a partnership (or, for a limited partnership, each general partner) that carries out such a transaction must disclose the transaction (see the note below).
Advisers and promoters must disclose any specified transactions they commercialize or promote whose form and substance has not required a significant change when implemented for different taxpayers or partnerships.
If a partnership is party to a nominee agreement that was entered into after May 17, 2019 (or before that date where the consequences of the transaction referred to in the agreement continue after May 16, 2019), each member of the partnership must file a mandatory disclosure for the agreement (see the note below).
Members of a partnership can also make a preventive disclosure for any transaction that a partnership of which they are a member has carried out.
A mandatory or preventive disclosure made by one member of a partnership, whether it is a limited partnership or another partnership, is deemed to have been made by each member of the partnership.