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.
941925
XXXXXXXXXX T.B. Kuss
Attention: XXXXXXXXXX
October 25, 1994
Dear Sirs:
Re: Tax Treatment of German Offene Handelsgesellschaft
This is in reply to your letter dated July 20, 1994 regarding whether a German offene Handelsgesellschaft ("OHG") would be treated as a partnership or corporation for Canadian tax purposes.
It is your understanding that an OHG has the following characteristics:
- it is recognized as a commercial partnership by the German Commercial Code
- all members of the OHG are subject to direct and unlimited liability
- any or all members of the OHG may be a limited liability company
- the OHG must be formed for the purpose of carrying on a business
- the OHG must be filed in the commercial register
- the assets of an OHG are jointly but not severally owned by the members
- a capital account is maintained for each member, representing the member's interest in the assets and profits of the OHG
- the OHG is not subject to tax, rather tax is imposed at the level of the members.
Based on the above characteristics it is our view that an OHG would be considered a partnership for Canadian tax purposes.
We hope our comments are of assistance.
Yours truly,
for Director
Reorganizations and Foreign Division
Rulings Directorate
Policy and Legislation Branch
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