T106 Summary - Information Return of Non-Arm's Length Transactions with Non-Residents

Instructions

If an election has been made under paragraph 261(3)(b) of the Income Tax Act to report in a functional currency, state all monetary amounts in that functional currency, otherwise state all monetary amounts in Canadian dollars (no cents). The codes for the functional currencies are as follows:

AUD – for Australian dollar

USD – for U.S. dollar

GBP – for U.K. pound

EUR – for Euro

Amended returns

If this is an amended return, tick the box provided at the top of the summary sheet.

You must re-complete the entire T106 package including the amendments (i.e. include all information not amended plus all amended information), and re-file this entire amended T106 package. If the initial T106 was paper filed, then the amended T106 must be paper filed. If the initial T106 was electronically filed, then the amended T106 can be electronically filed or paper filed.

Section 1 – Reporting person/partnership identification

For partnership code, tick:

1. If end partners are individuals or trusts.
2. If end partners are corporations.
3. If end partners are a combination of 1 and 2 mentioned above.

An end partner is the final recipient (corporation, trust or individual) that receives an allocation of income from the partnership after the income has flowed through the various levels of a tiered partnership.

For individual code, tick:

1. If the individual or the individual's spouse is self-employed.
2. If the individual or the individual's spouse is not self-employed.

Section 2 – Summary information

Q.1. Enter the applicable tax year/fiscal period.

Q.2. State if this is the first time that a T106 has been filed. If "no", enter the last tax year/fiscal period end for which T106 documentation was filed.

Q.5. Enter the gross revenue of the reporting person/partnership. Do not enter the net income or taxable income. When reporting non-arm's length transactions between a related party and a branch, enter the gross income attributable to the branch.

Q.6. State the main business activities of the reporting person/partnership by entering the appropriate North American Industrial Classification System (NAICS) code(s). The list of current NAICS codes can be found at the Statistics Canada internet site, https://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=1369825. Main business activity means any business segment which accounts for more than 10% of the gross revenue of the reporting person/partnership or the non-resident.

Certification

An authorized officer, person, or representative has to sign this form when it is completed. The certification declaration on this form applies to the T106 Summary and Slips.

Instructions

If an election has been made under paragraph 261(3)(b) of the Income Tax Act to report in a functional currency, state all monetary amounts in that functional currency, otherwise state all monetary amounts in Canadian dollars. Round all monetary amounts to the nearest Canadian dollar or functional currency unit, if applicable. Only certain corporations can elect to report in a functional currency. See the Canada Revenue Agency (CRA) publication Income Tax Folio S5-F4-C1, Income Tax Reporting Currency, at: canada.ca/cra-income-tax-reporting-currency. The codes for the functional currencies accepted at the time of publication are as follows:

AUD – for Australian dollar

USD – for U.S. dollar

GBP – for U.K. pound

EUR – for Euro

Amended returns

If this is an amended return, tick the box on the top of the T106 Summary form.

You must re-complete the entire T106 information return package including the amendments (i.e. include all information not amended plus all amended information), and re-file this entire amended T106 information return package. If the initial T106 information return was paper filed, then the amended T106 information return must be paper filed. If the initial T106 information return was electronically filed, then the amended T106 information return can be electronically filed or paper filed.

Section 1 – Reporting person/partnership identification

For partnership code, tick:

1. If the end partners are individuals or trusts.
2. If the end partners are corporations.
3. If the end partners are a combination of 1 and 2 mentioned above.

An end partner is the final recipient (corporation, trust or individual) that receives an allocation of income from the partnership after the income has flowed through the various levels of a tiered partnership.

For individual code, tick:

1. If either the individual or the individual's spouse is self-employed.
2. If neither the individual nor the individual's spouse is self-employed.

Section 2 – Summary information

Q.1. Enter the applicable tax year/fiscal period.

Q.2. State if this is the first time that a T106 information return has been filed. If "no," enter the last tax year-end/fiscal period end for which a T106 information return was filed.

Q.5. Enter the gross revenue of the reporting person/partnership. Do not enter the net income or taxable income. When reporting transactions between a non-arm's length party and a branch, enter the gross income attributable to the branch.

Q.6. State the main business activities of the reporting person/partnership by entering the appropriate NAICS code(s). The list of current NAICS codes can be found at https://www23.statcan.gc.ca/imdb/p3VD.pl?Function=getVD&TVD=1369825. Main business activity means any business segment that accounts for more than 10% of the gross revenue of the reporting person/partnership or the non-resident.

Certification

An authorized officer, person, or representative has to sign this form when it is completed. The certification declaration on this form applies to the T106 Summary and Slips.