Form T106 Information Return of Non-arm's Length Transactions With Non-residents - Canada

Form T106 Information Return of Non-arm's Length Transactions With Non-residents is used in Canada to report certain transactions between Canadian taxpayers and non-residents with whom they have a non-arm's length relationship. It helps the Canadian government track and monitor these transactions for tax purposes.

The person or entity who is involved in non-arm's length transactions with non-residents files the Form T106 Information Return in Canada.

FAQ

Q: What is Form T106?
A: Form T106 is an information return that must be filed by taxpayers in Canada to report non-arm's length transactions with non-residents.

Q: Who is required to file Form T106?
A: Taxpayers in Canada who engage in non-arm's length transactions with non-residents are required to file Form T106.

Q: What are non-arm's length transactions?
A: Non-arm's length transactions are transactions between parties who are related or have a close relationship, such as family members, business associates, or entities under common control.

Q: What information is reported on Form T106?
A: Form T106 requires taxpayers to report details of non-arm's length transactions, including the nature of the transaction, the names and addresses of the parties involved, and the amount of the transaction.

Q: When is Form T106 due?
A: Form T106 must be filed within six months from the end of the taxpayer's taxation year.

Q: Is there a penalty for not filing Form T106?
A: Yes, there are penalties for not filing Form T106 or for filing it late. The penalty can be up to $2,500 for each failure to file.