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.
Principal Issues: Whether a limited partnership established and governed pursuant to Part 3 of the State of Victoria Partnership Act (Australia)(1958) is a partnership or a corporation for purposes of the Income Tax Act (Canada)(the "Act")?
Position: a partnership
Reasons: The Partnership more closely resembles a partnership than a corporation for purposes of the Act
XXXXXXXXXX Gilles Gosselin
2003-004334
February 17, 2004
Dear XXXXXXXXXX:
Re: Australian Limited Partnership
We are writing in response to your letter that we received on October 10, 2003. You have asked us whether we would characterize a limited partnership established and governed pursuant to Part 3 of the State of Victoria Partnership Act (Australia)(1958)(the "Australian LP") as a partnership or a corporation for purposes of the Income Tax Act (Canada)(the "Act"). We understand from our own research that for Australian tax purposes an Australian LP may in many instances be taxed as a company.
We have analysed the characteristics of the Australian LP and in our view it more closely resembles a partnership than a corporation for purposes of the Act. The characterization of an Australian LP as a company for Australian tax purposes is not relevant in assessing its proper characterization for Canadian tax purposes.
If you have any questions or comments please feel free to contact the writer, Gilles Gosselin, at (613) 946-3553. We trust that our comments will be of assistance to you.
Yours truly,
Jim Wilson
Section Manager
for Division Director
International and Trusts Division
Income Tax Rulings Directorate
Policy and Planning Branch
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