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.
Please note that the following document, although believed
to be correct at the time of issue, may not represent the
current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
XXXXXXXXXX 5-940777
Attention: XXXXXXXXXX
May 2, 1994
Dear Sirs:
Re: Limited Partnership Losses
This is in reply to your letter dated March 23, 1994, in which you requested our opinion as to whether a general partnership, that is a limited partner of a limited partnership, could carry forward under paragraph 111(1)(e) of the Income Tax Act (the "Act") its limited partnership losses arising from the limited partnership.
The particular circumstances outlined in your letter appear to be actual transactions involving specific taxpayers. As mentioned in paragraph 21 of Information Circular 70-6R2 dated September 28, 1990, as amended by Special Release
dated September 30, 1992, it is not the practice of this Department to provide opinions with respect to proposed
transactions other than in the form of advance income tax rulings. On the other hand, the tax consequences of
completed transactions are best determined by our District Offices in the course of tax audits. This Directorate is therefore not in a position to give a definitive response to your inquiry. However, we are prepared to offer you the following general comments which may be of some assistance.
Unless as otherwise stated all references to the Act are to the Income Tax Act, S.C. 1970-71-72, c. 63 as mended consolidated to June 10, 1993.
As indicated to you during a recent telephone conversation (XXXXXXXXXX/Mandeville), it is our position that a general or limited partnership could not carry forward its limited partnership losses arising from a limited partnership since a partnership is not deemed to be a taxpayer for the purposes of section 111 of the Act. Furthermore, subsection 96(1) of the Act does not provide for a flow-through of the limited partnership loss of a partnership to its partners.
This matter has been previously brought to the attention of the Department of Finance.
We trust these comments will be of assistance to you.
Yours truly,
for Director
Manufacturing Industries,
Partnerships and Trusts Division
Rulings Directorate
Legislative and Intergovernmental
Affairs Branch
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content