CRA indicates that payments to a retired partner generally are GST/HST exempt
CRA confirmed that payments made to a retired partner generally would be considered as consideration for an exempt financial service (assuming no rendering of services), including payments to which ITA s. 96(1.1) applies (which, broadly speaking, are treated for ITA purposes as akin to deferred earnings), stating:
When a partner acquires partnership units (i.e. an interest in a partnership), the partner has acquired certain rights which include a right to receive distributions. To the extent that payments made by a partnership to a retired partner are in respect of an interest in the partnership, or any right in respect of such an interest, the payment would be consideration for an exempt supply of a financial service … .