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.
Principal Issues:
limited partners carrying on business
Position:
limited partner considered to be carrying on business provided limited partnership carries on active business
Reasons:
admin position
S. Tevlin
XXXXXXXXXX 972281
Attention: XXXXXXXXXX
August 27, 1997
Dear Sirs:
Re: Limited Partners Carrying on Business
We are writing in response to your letter dated August 26, 1997 wherein you requested our opinion with respect to whether or the not a limited partner of a limited partnership carries on an active business that is carried on by the partnership of which it is a partner.
In this regard we offer the following comments.
We confirm that notwithstanding the Robinson Trust appeal, it is still Revenue Canada's general view that limited partners would be regarded as carrying on an active business provided the partnership itself is carrying on an active business.
The foregoing comments are given in accordance with the practice referred to in paragraph 22 of Information Circular 70-6R3 dated December 30, 1996 and are not binding on Revenue Canada,
Yours truly,
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings and Interpretations Directorate
Policy and Legislation Branch
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