Under a Revenu Québec administrative policy, a partnership can be exempted from filing an information return if it meets all of the following conditions:

• At the end of its fiscal period:
  • the total absolute value of its revenue and expenses was less than $2 million; or
  • the value of its assets was less than $5 million.
• Throughout the fiscal period:
  • it had no more than five members, none of which was a partnership, trust or corporation;
  • it was not an interposed partnership (that is, it was neither itself a member of another partnership, nor were any of its members partnerships);
  • no exploration or development expenses were renounced in favour of the partnership and no amounts of assistance were allocated to the partnership (the partnership must in turn allocate these amounts and expenses to its members) because the partnership invested in flow-through shares;
  • it was not a specified investment flow-through (SIFT) entity having an establishment in Québec.

If a partnership is not required to file the partnership information return, each individual who is a member of the partnership must complete Schedule L of the personal income tax return. They should also read the information relating to their situation.

For more information, consult the guide Business and Professional Income (IN-155-V).