Where new partners are found to contribute cash to a partnership which has encountered cash flow problems, and the capital accounts of the old partners are increased to recognize the fair market value of the assets, the increase in the capital accounts of the old partners should be taken as an indication that a new partnership was formed, with the result that a Canadian partner would have disposed of its interest in the old partnership, and s. 98(2) would deem the old partnership to have disposed of its property to its partners.
