Filing T101 forms
A principal-business corporation (PBC) has to complete and file the appropriate form to:
- renounce resource expenditures (Form T101A);
- reduce or reclassify an amount previously renounced (Form T101B);
- remit any applicable Part XII.6 tax (Form T101C); or
- allocate an amount of assistance to investors (Form T101D).
A PBC renounces expenditures by completing and filing Form T101A, Claim for Renouncing Canadian Exploration Expenditures (CEEs) and Canadian Development Expenditures (CDEs), along with T101 slips, Statement of Resource Expenses, which allocates the expenses to each investor.
A PBC reduces or reclassifies expenditures by completing and filing Form T101B, Claim for Adjustments to Canadian Exploration Expenditures (CEEs) and Canadian Development Expenditures (CDEs) Previously Renounced. In most cases it will also have to file T101 slips, Statement of Resource Expenses, which allocate the reductions or reallocations, as the case may be, to each investor.
A PBC must complete and file Form T101C, Part XII.6 Tax Return, if it is liable to pay Part XII.6 tax. The tax is related to renounced expenditures using the look-back rule (Form T101A, Line 61) where not all the amounts renounced were spent by the end of February in Year 2 (Year 1 being the year the FTS agreement was signed or the flow-through warrants (FTWs) were exercised).
A PBC allocates assistance related to renounced expenses to its investors by completing and filing Form T101D, Summary of Assistance, and T101 slips, Statement of Resource Expenses. In most cases, assistance received would be netted against the expenses that may be renounced to investors.
The filing deadlines are outlined in each type of Form T101. The chart below summarizes the general filing requirements. Assume Year 1 is the year that the FTS agreement was entered into, or an FTW was exercised.
Figure 1: Filing deadlines and other dates
- Effective date of renunciation when using look-back rule must be December 31 of Year 1
- Renunciation period when using the look-back rule must be January, February or March of Year 2
- Latest date to file a renunciation using the look-back rule without being subject to penalties if the renunciation was made in March (Note: Form T101A must be filed in the month following the month the renunciation was made).
- Latest date to file Part XII.6 tax without being subject to penalties before March of Year 3.
- Latest date to renounce expenditures that were incurred in the 24 months following the agreement before March of year 4.
- Latest date to file a renunciation made in February of year 4.
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