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: Circumstances of elections made under subsection 96(3).
Position: General comments
Reasons: See below.
2011 CTF
November 27 - 29
15. Can a partnership make an election under section 22 of the Act?
Subsection 96(3) of the Act provides rules that apply if a member of a partnership makes an agreement, designation or election under certain provisions of the Act, including section 22, for a purpose that is relevant to the computation of the members' income from the partnership. Paragraph 96(3)(a) stipulates the election is valid only if it was made or executed on behalf of the taxpayer and each other person who was a member of the partnership during the fiscal period, and it was made or executed on behalf of that person and each other person who was a member of the partnership and that person had authority to act for the partnership.
If these conditions are met, then the agreement, designation or election is deemed by paragraph 96(3)(b) to have been made or executed by each other member of the partnership.
2011-042627
Rob Ferrari
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