New Mandatory Disclosure Reporting Requirements for Businesses
On June 22, 2023, new mandatory disclosure rules were passed into law comprised of three sections: reportable transactions, notifiable transactions, and reportable uncertain tax treatment.
These rules are intended to tackle aggressive tax planning, it is important to note that ordinary tax planning done by middle market companies will be captured under the scope of these new rules. Review the following article as written by RSM Canada outlining the requirements to remain in compliance.
Taxpayers who may have reporting requirements under the new mandatory disclosure rules should review the linked forms below carefully.
Form RC312 is used to report reportable and notifiable transactions and Form RC3133 is used to disclose reportable uncertain tax treatment (RUTT). Further details can be found here.
As with all new legislation and reporting forms, there will likely be adjustments as the CRA, tax practitioners, and taxpayers have the opportunity to have practical experience with the new forms and rules. Failure to file the required forms could result in monetary penalties and extended periods for the CRA to reassess the taxpayer.