Income Tax Filings
Required for Condominium Corporations
Although condominium corporations do not operate as traditional corporations, they are still obligated to file income tax returns under the Income Tax Act of Canada (the "Tax Act").
The Tax Act does not distinguish between traditional corporations and other forms of corporations such as condominiums. Therefore, pursuant to paragraph 248(1) a condominium corporation falls within the unlimited definition of a "corporation" and pursuant to paragraph 150(1)(a) of the Tax Act all corporations are required to file income tax returns within six months of their year end.
Most, but not all, condominium corporations are exempted from paying tax as they qualify as non-profit corporations pursuant to paragraph 149(1)(1) of the Tax Act.
Even if a condominium corporation qualifies as a non-profit corporation it is still required to file a tax return along with the required annual information form for a non-profit organization. The auditor for the condominium will be able to provide each condominium with the appropriate forms.
To determine whether or not a condominium corporation is likely to qualify as a non-profit corporation the condominium's auditor, if she or he has not already done so, should review Interpretation Bulletin-496 which outlines the guidelines used by the Canada Customs and Revenue Agency for non-profit corporations. A copy of IT-496 can be found at this website address:
http://www.cra-arc.gc.ca/E/pub/tp/it496r/it496r-e.htmlLorraine Stillaway, B.A., LL.B., McCarter Grespan Robson Beynon Thompson LIP
Last Updated by Steve Warner on Dec 30, 2006