Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Due diligence exception

233.5 The information required in a return filed under section 233.2 or 233.4 does not include information that is not available, on the day on which the return is filed, to the person or partnership required to file the return where

• (a) there is a reasonable disclosure in the return of the unavailability of the information;

• (b) before that day, the person or partnership exercised due diligence in attempting to obtain the information;

• (c) if

  • (i) the return is required to be filed under section 233.2, or

  • (ii) the return is required to be filed under section 233.4 by a person or partnership in respect of a corporation that is a controlled foreign affiliate, for the purpose of that section, of the person or partnership,

  it was reasonable to expect, at the time of each transaction, if any, entered into by the person or partnership after March 5, 1996 that gives rise to the requirement to file the return or that affects the information to be reported in the return, that sufficient information would be available to the person or partnership to comply with that section; and

• (d) if the information subsequently becomes available to the person or partnership, it is filed with the Minister not more than 90 days after it becomes so available.

Marginal note:Returns respecting distributions from non-resident trusts

• 233.6 (1) Where a specified Canadian entity (as defined by subsection 233.3(1)) for a taxation year or fiscal period receives a distribution of property from, or is indebted to, a non-resident trust (other than a trust that was an excluded trust in respect of the year or period of the entity or an estate that arose on and as a consequence of the death of an individual) in the year or period and the entity is beneficially interested in the trust at any time in the year or period, the entity shall file with the Minister for the year or period a return in prescribed form on or before the day that is

  • (a) where the entity is a partnership, the day on or before which a return is required by section 229 of the Income Tax Regulations to be filed in respect of the fiscal period of the partnership or would be required to be so filed if that section applied to the partnership; and

  • (b) where the entity is not a partnership, the entity’s filing-due date for the year.

• Marginal note:Excluded trust defined

  (2) For the purpose of subsection 233.6(1), an excluded trust in respect of the taxation year or fiscal period of an entity means

  • (a) a trust described in paragraph (a) or (b) of the definition “exempt trust” in subsection 233.2(1) throughout the portion of the year or period during which the trust was extant;

  • (b) a trust in respect of which the entity is required by section 233.2 to file a return in respect of each taxation year of the trust that ends in the entity’s year;

  • (c) a trust an interest in which is at any time in the year or period specified foreign property (as defined by subsection 233.3(1)) of the entity, where the entity is a reporting entity (as defined by subsection 233.3(1)) for the year or period; and

  • (d) a trust in respect of which the entity is required by section 233.4 to file a return for the year or period.