Companies with the Same Tax ID

Suppose that a company or legal entity owns several companies or business units that share the same tax ID. You must prepare T5018 returns for the legal entity, not for the individual companies. This means that you must combine the amounts that the individual companies (payers) paid to the same supplier.

Because the system enables you to specify up to five alternate addresses for each company, you can use the alternate address number of the legal entity as one of the alternate addresses for each company. You use the Work With Addresses program to specify alternate addresses. Later in the T5018 process, you specify which of the alternate addresses the system uses to combine the payments that the individual companies made to one supplier.

For example, Smith Construction Company (your company) owns Johnson Fabrications Incorporated (another company). Each company made payments to Marshall Electrical Systems, a supplier, but you must create a T5018 return only for the legal entity, Smith Construction Company. You specify Smith Construction Company as one of the alternate addresses for Johnson Fabrications Incorporated, which enables the system to combine and record the payments that both companies made to Marshall Electrical Systems on the T5018 for Smith Construction.