Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
1989 CORPORATE MANAGEMENT TAX CONFERENCE
QUESTION 19
A NON-RESIDENT OWN AN INTEREST IN A PARTNERSHIP WHOSE ASSETS CONSIST PRIMARILY OF REAL PROPERTY. IN REVENUE CANADA'S VIEW, WOULD THE PARTNERSHIP INTEREST HELD BY THE NON-RESIDENT BE "ELIGIBLE PROPERTY" AS DEFINED IN SUBSECTION 85(1.1) OF THE ACT?
DEPARTMENT'S POSITION
AS INDICATED IN OUR RESPONSE TO QUESTION 50 AT THE 1986 REVENUE CANADA ROUND TABLE, IT IS THE DEPARTMENT'S VIEW THAT AN INTEREST IN A PARTNERSHIP IS NOT CONSIDERED TO BE AN INTEREST IN ITS UNDERLYING ASSETS FOR PURPOSES OF SECTION 85 OF THE ACT. THUS A PARTNERSHIP INTEREST OWNED BY A NON-RESIDENT WILL NORMALLY BE ELIGIBLE TO BE TRANSFERRED UNDER SECTION 85 OF THE ACT, NOTWITHSTANDING THAT THE ASSETS OF THE PARTNERSHIP CONSIST PRIMARILY OF REAL ESTATE. HOWEVER WHERE THE FORMATION OF THE PARTNERSHIP AND THE TRANSFER OF THEL AND HELD BY A NON-RESIDENT ARE UNDERTAKEN TO CIRCUMVENT THE PROHIBITION IN SECTION 85, SUBSECTION 245(2) OF THE ACT WOULD LIKELY APPLY.
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© Her Majesty the Queen in Right of Canada, 1989
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© Sa Majesté la Reine du Chef du Canada, 1989
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