CRA apparently not following Miedzi/partnerships not covered (pp. 674-5)
Stantec. . .[and] Miedzi Copper… significantly expand the scope of ITC entitlement for holding corporations, although the CRA has not changed its published position, apparently on the basis that the decisions were issued under the Tax Court of Canada's Informal Procedure, . . .The rule under subsection 186(1) only applies to related corporations. If the underlying operating entity is a partnership, or if the "holding company" itself is a partnership, there is no ITC available to the holding company.
Election only available for corps (p. 675)
. . . for some reason, only corporations can benefit from the section 150 election. The election does not apply to partnerships that are listed financial institutions, or to partnerships that are closely related (e.g., wholly-owned) to listed financial institutions.
Set-off mechanism not available for partnerships (p. 675)
Subsection 228(7) of the ETA permits a set-off of refunds or rebates under certain circumstances by one person against tax owing by another person. . . .
The Offset of Taxes (GST/HST) Regulations provide that these rules apply in respect of closely related entities. …
One prescribed circumstance for the offset to be available is that "the person who may reduce or offset the tax that is remittable and any other person who may be entitled to a refund or rebate under the Act are corporations." Partnerships do not qualify. …
No SLFI permanent establishment for partnerships (p. 676)
. . . [F]or some reason, only loan corporations are deemed to have permanent establishments under paragraph 3(c) of the SLFI Regulations. A loan partnership, while still a listed financial institution, would only have permanent establishments in provinces where it has a physical presence. This means that a corporation might be a SLFI, whereas a partnership with the same operations would not be a SLFI.
No comparable relief for partnerships (p. 676)
…When a corporation winds up into its wholly-owned parent, the supply of property from the corporation to the parent is deemed not to be a supply under paragraph 272(b) of the ETA, and no GST/HST applies. If a partnership dissolves, for example, by operation of law when one partner buys the partnership interest of the other, the partnership is deemed to continue to exist until it is deregistered for GST/HST purposes under subsection 272.1(6) of the ETA. The supply of property from the partnership to the partner is not relieved from GST/HST, unless a section 167 election can be made.
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