T5013 Filing in Canada: What Partnerships Need to Know
A Practical Guide for Small Businesses, Investors, and Professional Advisors
When Canadians hear the word “partnership,” many assume it means no tax filing is required. Unfortunately, this misconception leads to penalties every year.
Even though a partnership itself does not pay income tax, it must file a T5013 Partnership Information Return when certain conditions are met. CRA uses this return to track income allocation, verify partner shares, and ensure reporting consistency between partners.
This article explains what the T5013 is, when you must file, common traps, and what business owners should do today.
What Is the T5013 Information Return?
A partnership must file a T5013 to report:
Total revenues and expenses
Each partner’s share of income or loss
Changes in ownership percentages
Relevant schedules for industry-specific reporting
A complete T5013 package includes:
T5013 FIN (financial information)
T5013 SUM (summary)
T5013 slips for each partner
CRA compares T5013 data with each partner’s personal or corporate tax return.
Who Must File a T5013?
A T5013 is required if ANY of the following apply:
✔ The partnership carries on business in Canada and has at least one Canadian-resident partner
✔ It is a Specified Investment Flow-Through (SIFT) partnership (e.g., publicly traded investment structures)
✔ The partnership receives or allocates income such as oil, gas, natural resource, or pipeline-related income (Schedule 52 applies)
Possible Exemption for Small Partnerships:
A partnership may avoid filing only if ALL conditions are met:
Total gross revenue + expenses ≤ $2 million, AND
Total assets ≤ $5 million, AND
All partners are individuals (not corporations), AND
No partner is a trust or partnership
If any condition fails → T5013 is mandatory.
Common Situations Where Filing IS Required (Even If You Think It’s Not)
Many partnerships mistakenly skip filing because they misunderstand CRA requirements. A T5013 is required when:
One partner is a corporation → automatically must file
The partnership is part of a tiered structure (partnership owns another partnership)
CRA specifically requests a T5013
The partnership ended partway through the year (final return required)
Important:
CRA can reassess late-filed partnerships up to 3 years, even if partners claimed exemption in error.
Deadlines: When Is the T5013 Due?
The due date depends on who the partners are:
All individual partners:
→ Due March 31 following the fiscal year-endAt least one corporate partner:
→ Due 5 months after year-endFinal return (partnership terminated):
→ Due 90 days after dissolution
Filing requires both the T5013 return and slips to be sent to CRA by the deadline.
Penalties for Not Filing
Penalties can add up quickly:
Basic Penalty:
$25 per day, min $100, max $2,500
Large Partnerships or Late for Over 6 Months:
$100 per month, up to 24 months → max $2,400
If 10 partners × 6 months late → penalties per partner can multiply.
Severe or Repeated Non-Compliance:
CRA may impose penalties up to $6,000+
Resource partnerships may face penalties starting at $30,000
Once CRA requests a T5013, failure to file is no longer optional.
What If You Missed a Filing?
CRA’s Voluntary Disclosures Program (VDP) may waive penalties if you apply before CRA contacts you.
This is often the best option for partnerships that unintentionally failed to file for multiple years.
Partnership Dissolution Rules
If a partnership stops operating before its regular fiscal year-end:
A final T5013 must be filed
Deadline = earlier of
90 days after dissolution
Normal annual due date
Dissolution may also trigger capital gains tax if partnership assets are considered “disposed”.
Example Scenario
A partnership with 6 individual partners has a year-end of January 31.
If dissolved on June 30, 2024:
Two filing periods must be filed:
Feb 1 → Jan 31 (normal year)
Feb 1 → Jun 30 (final, 5 months)
Final return due: Sept 28, 2024
Missing either period triggers penalties.
What This Means for Business Owners
Partnerships, even small ones, must take T5013 obligations seriously:
Track ownership changes
Document partner contributions and withdrawals
Ensure all partners agree on allocation percentages
Confirm whether an exemption applies — don’t assume
If your business structure is changing (e.g., one partner incorporates), this may impact T5013 requirements.
Final Thoughts
Partnerships in Canada can be flexible and tax-efficient—but only when compliance is done correctly.
Understanding your obligations under the T5013 rules is essential to avoiding penalties and keeping CRA audits away.
If your partnership needs a review or assistance with filing, contact Pantax for professional support.
Disclaimer
The information provided in this article is for general educational and informational purposes only and does not constitute tax, accounting, or legal advice.
Tax rules can change, and the applicability of laws depends on the specific facts and circumstances of each individual or business.
Readers should not act or rely on this information without seeking professional advice tailored to their situation. Pantax Accounting assumes no liability for actions taken based on the content provided here.
For personalized guidance, please consult a qualified tax professional.