Requirement to File an Information Return
The following types of partnerships must file the Partnership Information Return (form TP-600-V) for every fiscal period:
- any partnership that carries on a business:
- in Québec, or
- in Canada, outside Québec, where one of its members is an individual (including a trust) that is resident in Québec or a corporation that has an establishment in Québec;
- any Canadian partnership or specified investment flow-through partnership (SIFT partnership) a member of which is an individual (including a trust) that is resident in Québec or a corporation that has an establishment in Québec;
- any partnership that owns a specified immovable, of which one of the members is a specified trust.
Notwithstanding the rules stated in points 1 and 2 above, a Revenu Québec administrative policy exempts a partnership 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; or
- throughout the fiscal period,
- it had no more than five members that were not partnerships, trusts or corporations,
- it was not part of a tiered partnership structure (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 partnership having an establishment in Québec.
If the partnership does not file an information return because of this administrative policy, section 1007.1 of the Taxation Act will not apply.
A SIFT partnership covered by point 2 above must file an information return if it has an establishment in Québec. It must enclose with the return a duly completed copy of form TP-1129.71-V, Income Tax Payable by a SIFT Partnership, and, where applicable, the payment of any income tax payable.
An investment club that is not a partnership, trust or corporation must file an information return if it elects to be considered as a partnership in order to facilitate the calculation of its members' income.