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

Form T106 is an annual information return on which you report the corporation's activities with certain non-resident persons under section 233.1.

File Form T106 if all of the following apply:

• at any time in the tax year, you were either a resident in Canada or a non-resident that carried on business (other than as a member of a partnership) in Canada

• you entered into reportable transactions with a non-resident person with whom you were not dealing at arm's length at any time in the year and partnerships of which the non-resident person is a member

• the total reportable transactions are more than CAN$1,000,000

Form T106 consists of the T106 Summary and the T106 slips. File a separate T106 slip for each non-resident.

On Form T106, report all transactions between you and the non-resident, including those transactions concerning:

• tangible property

• rents

• royalties and intangible property

• services

• advances, loans, or other accounts receivable or payable, to or from a non-resident (beginning and ending balances including gross increases and decreases)

File Form T106 within six months of the end of the reporting corporation's tax year. Send it to the following address:

References
Sections 233.1 and 251
Subsections 162(7) and 162(10)

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