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:
whether association is trust or partnership
Position:
is unincorporated association
Reasons:
constitution of association does not evidence requisite elements for partnership or trust
November 7, 1996
GST Rulings and Interpretations HEADQUARTERS
J. Sitka, A/Director Resource Industries Section
Financial Institutions and Real Denise Y. Dalphy
Property Division (613) 957-9231
963627
Legal Status of XXXXXXXXXX
This is in reply to your memorandum of October 28, 1996 where you requested our opinion on the legal status of XXXXXXXXXX.
In our view, the constitution of XXXXXXXXXX evidences an unincorporated association; XXXXXXXXXX is neither a trust nor a partnership. A partnership is the relationship which subsists between persons carrying on business in common with a view to profit. There is no indication that such a relationship exists among the members of XXXXXXXXXX. In order for a relationship to be a trust, three certainties must exist, including certainty of intention to create a trust - that is, there must be evidence of an intention to create a fiduciary relationship between a trustee and the beneficiaries of the trust. There is no indication that XXXXXXXXXX intended to create a trust.
We trust this opinion will be of assistance.
R.S. Biscaro
Director
Resources, Partnerships and
Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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