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.
CTF - 1990 Conference Report
QUESTION I-39
PARTNERSHIPS - RELATED PARTIES
The Act contains many relieving provisions where the particular parties to a transaction are related (i.e. subsection 69(11), paragraph 191(2)(a) and subparagraph 256(7)(a)(i)).
(a) Can a partnership be related to a corporation?
(b) Can partnerships be related?
OUR RESPONSE
Although subsection 251(2) of the Act does not include the word "partnership" in the definition of "related persons", it is the Department's practice, relying on the provisions of subsection 96(1), to consider a partnership to be a person when the computation of income at the partnership level under Division B of Part I is involved. Thus, for example, a partnership that controls a corporation could be related to the corporation by virtue of paragraph 251(2)(b) where such a relationship is relevant to the computation of the partnership's income. In the cases where a partnership is not viewed as a person, the references to the word "person" in subsection 251(2) would be read as references to the partners of the partnership. It is therefore difficult to make any broad statements in response to the two questions raised.
CTFNovember 1990R.E. ThompsonSection 22
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