CRA expands on why it views a UK LLP as a corporation

CRA has provided its written responses to the questions posed at the October 27, 2020 CTF Roundtable. In its written response as to why it views a UK LLP as a corporation for ITA purposes, it set out its lists of what it considers to be salient attributes that led it to this conclusion under its two-step approach:

• A UK LLP has a legal existence separate from its members.
• A UK LLP, and not its members, carry on the business.
• A UK LLP, and not its members, acquires and owns property in its own name for use in its business, and is responsible for any debts or obligations incurred as a result of carrying on its business.
• The capital of a UK LLP serves the same function as the share capital of a corporation.

Neal Armstrong. Summary of 27 October 2020 CTF Roundtable, Q.9 under s. 248(1) - corporation.