CRA indicates that the former partnership business need not be carried on continuously throughout the 3-month period referred to in s. 98(5)

S. 98(5) requires that, within 3 months of a Canadian partnership ceasing to exist, one of the members (the “proprietor”) must carry on the business that was previously the business of the partnership.

CRA indicated that there was no requirement that the proprietor carry on the business throughout the 3-month period, so that the business could recommence at any time during that period, i.e., the phrase "within the 3 months" does not mean "throughout the 3 months."

However, whether the former partner carried on the former partnership business and continued to use, in the course of that business, the partnership property acquired on the winding-up, was a question of fact (e.g., there might be one business even if there was a hiatus during which it was not carried on).

Neal Armstrong. Summary of 2 December 2025 CTF Roundtable, Q.11 under s. 98(5).