Form T106

Information Return of Non-Arm’s Length Transactions with Non-Residents

Form T106, Information Return of Non-Arm’s Length Transactions with Non-Residents, has been revised as the result of amendments to section 233.1 of the Income Tax Act. These legislative amendments, which received Royal Assent on June 8, 1998, require that persons, including corporations, individuals and trusts, and partnerships, file form T106 effective for taxation years and fiscal periods beginning after 1997. Previously, only corporations were required to file the form T106.

Corporations may file the previous version of the form T106, known as form T106 (96), or the new version, known as form T106 (98), until September 30, 1999. Effective October 1, 1999, corporations will only be able to file the form T106 (98).

Partnerships, trusts and individuals will have until September 30, 1999 to review and prepare for the new reporting requirements under section 233.1 of the Income Tax Act. Effective October 1, 1999, partnerships, trusts and individuals with filing due dates after September 30, 1999 will have to file form T106 (98).

For general enquiries or to obtain a copy of T106 (98), contact the Business Enquiries section of your tax services office. For detailed information about completing T106 (98), contact the International Audit Division of your tax services office.