CRA affirms two-step approach for characterizing a mooted foreign partnership

In CRA’s Folio on "What is a Partnership?" it states that a two-step approach (similar to Memec) should be applied in determining whether a foreign arrangement is a partnership: determine the characteristics of the arrangement under the foreign law and contracts; and compare those characteristics with the attributes of a partnership under "Canadian law." CRA is somewhat vague as to whether it accepts the implicit approach in Backman that the Canadian law to be applied here is that of the common law provinces (carrying on business in common with a view to profit).

Neal Armstrong. Summary of S4-F16-C1: "What is a Partnership?" under s. 96.