The next measure is found in clause 25 of the bill. It relates to the reporting requirements in respect of foreign affiliates.
Currently, taxpayers have until 15 months after the end of their taxation year to file what is called a T1134 form, which provides information in respect of their foreign affiliates. The general requirement to file a tax return is six months after the end of the taxation year.
This measure would reduce the amount of time to file the T1134 reporting form in respect of foreign affiliates from 15 months after the end of the taxation year to 10 months after the end of the taxation year. This provides the Canada Revenue Agency with additional time to provide needed analysis and risk assessments in respect of these types of transactions while balancing that with the needs of businesses to have enough time to prepare these forms.
There will be a transition period in which the deadline will be 12 months. That applies to taxation years that begin in 2020. Then, starting with taxation years that begin in 2021, it will go to 10 months.