CRA confirms that the s. 98(1)(a) partnership relieving rule does not apply to a former partner
31 March 2015 - 4:02pm
s.98(1)(a) indicates that until all the property of a dissolved partnership has been distributed, the partnership and the partnership property are deemed to continue.
CRA has confirmed that this rule does not apply to someone who has already ceased to be a partner at the time of dissolution, but notes that this point does not have much significance since ss. 98.1(1)(a) and (b) for various purposes deem the former partner not to have disposed of its partnership interest until the later of its residual entitlement (otherwise than under s. 96(1.1)) to partnership property being satisfied, and the end of the dissolution year.
Neal Armstrong. Summary of 26 January 2015 T.I. 2014-0545051E5 under s. 98(1).