Taxation Of Partnerships

A partnership by itself does not pay income tax on its operating results and does not file an annual income tax return. Instead, each partner includes a share of the partnership income or loss on a personal, corporate, or trust income tax return. Each partner also has to file either financial statements or one of the forms referred to in the section on sole proprietorship (or a computer - generated version of one of these forms). You do this whether or not you actually received your share in money or in credit to your partnership's capital account.

A partnership has to file a partnership information return if, throughout the fiscal period, it has six or more members or if one of its members is a member of another partnership. For GST/HST purposes, a partnership is considered to be a separate person and must file a GST/HST return and remit tax where applicable.

Click HERE for the current tax rates for taxpayers in Alberta.

Click HERE for more discussion on Taxation of Partnerships.

Careful planning with a Chartered Accountant is warranted. Contact Keith Anderson CA at (780) 447-5830 if you need advice. 

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