CRA will continue "pour le moment" to treat partnership activities as fiscally transparent notwithstanding recent Quebec decisions

Decisions such as Robinson, Randall and Sandhu  have established that partners are considered for purposes of the Act to be carrying on the partnership activities (although s. 253.1 overrides this in some contexts) - so that if the sole asset of a corporation is an interest in a partnership carrying on an active business, that partner will be considered to be carrying on an active business.

CRA was asked whether this has been changed by two Quebec Court of Appeal decisions which indicate that a partnership possesses a patrimony separate from its partners.  CRA indicated that trying to apply this concept to the Act would raise numerous questions.  For the time being, it will continue to treat a partnership as a look through entity for purposes of attributing its activities to the partners.

Neal Armstrong.  Summary of 5 October 2012 APFF Round Table, Q. 6, 2012-0453991C6 F under s. 248(1) - small business corporation.