Form T2005 "Agreement Among Associated Corporations to Allocate an Amount to Calculate Their Base Level Deduction" - Canada

Form T2005 or the "Form T2005 "agreement Among Associated Corporations To Allocate An Amount To Calculate Their Base Level Deduction" - Canada" is a form issued by the Canadian Revenue Agency.

The form was last revised in January 1, 2012 and is available for digital filing. Download an up-to-date Form T2005 in PDF-format down below or look it up on the Canadian Revenue Agency Forms website.

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Download Form T2005 "Agreement Among Associated Corporations to Allocate an Amount to Calculate Their Base Level Deduction" - Canada

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Agreement Among Associated Corporations to Allocate an Amount to
Calculate Their Base Level Deduction
• For use by associated corporations to allocate the amount to be used when calculating the corporation's base level deduction for a tax
year under subsection 18(2.3) of the Income Tax Act.
Under subsection 18(2), a corporation whose principal business is the leasing, rental or sale, or the development for lease, rental or sale of
real property, can deduct interest and taxes on vacant land up to the total of the income from the land (net of other deductions) and the
base level deduction for the year.
For a corporation that is a member of an associated group of corporations, the base level deduction for a tax year is its allocated portion of
the amount of interest, calculated at the prescribed rate, for $1 million of debt outstanding throughout the year.
Each corporation has to file one completed copy of this agreement signed on behalf of every corporation of the group with its
T2 Corporation Income Tax Return for the tax year.
File a new agreement for each tax year. If the agreement is not filed within 30 days after the written notification that such an agreement is
required, the allocation will be determined by the Minister.
Where a corporation has two or more tax years ending in the same calendar year and is associated with another corporation, according to
paragraph 18(2.5)(a), the corporation's base level deduction (before any proration for a short year) for each tax year is the amount
allocated to it for its first such tax year under subsection 18(2.3).
Prorate the base level deduction for any tax year of less than 51 weeks according to 18(2.5)(b).
If you need more space, attach additional schedules.
Business number of associated
Base level deduction
Signature of authorized officer and
Date
Name of associated corporations
corporations
allocated for the tax year
position or office
YYYY/MM/DD
$
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Total
Privacy Act, Personal Information bank number CRA PPU 047
(Vous pouvez obtenir ce formulaire en français à www.arc.gc.ca/formulaires ou en composant le 1-800-959-7775.)
T2005 E (12)
Clear Data
Help
Protected B
when completed
Agreement Among Associated Corporations to Allocate an Amount to
Calculate Their Base Level Deduction
• For use by associated corporations to allocate the amount to be used when calculating the corporation's base level deduction for a tax
year under subsection 18(2.3) of the Income Tax Act.
Under subsection 18(2), a corporation whose principal business is the leasing, rental or sale, or the development for lease, rental or sale of
real property, can deduct interest and taxes on vacant land up to the total of the income from the land (net of other deductions) and the
base level deduction for the year.
For a corporation that is a member of an associated group of corporations, the base level deduction for a tax year is its allocated portion of
the amount of interest, calculated at the prescribed rate, for $1 million of debt outstanding throughout the year.
Each corporation has to file one completed copy of this agreement signed on behalf of every corporation of the group with its
T2 Corporation Income Tax Return for the tax year.
File a new agreement for each tax year. If the agreement is not filed within 30 days after the written notification that such an agreement is
required, the allocation will be determined by the Minister.
Where a corporation has two or more tax years ending in the same calendar year and is associated with another corporation, according to
paragraph 18(2.5)(a), the corporation's base level deduction (before any proration for a short year) for each tax year is the amount
allocated to it for its first such tax year under subsection 18(2.3).
Prorate the base level deduction for any tax year of less than 51 weeks according to 18(2.5)(b).
If you need more space, attach additional schedules.
Business number of associated
Base level deduction
Signature of authorized officer and
Date
Name of associated corporations
corporations
allocated for the tax year
position or office
YYYY/MM/DD
$
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Total
Privacy Act, Personal Information bank number CRA PPU 047
(Vous pouvez obtenir ce formulaire en français à www.arc.gc.ca/formulaires ou en composant le 1-800-959-7775.)
T2005 E (12)