Subsection 272.1(1)
See Also
ONR Limited Partnership v. The King, 2024 TCC 156
The appellant (the “LP”) was a wholly-owned limited partnership of a REIT. The REIT and the LP entered into two successive written forms of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 169 - Subsection 169(1) | REIT did not incur its unit offering expenses as agent for its subsidiary LP | 360 |
| Tax Topics - General Concepts - Agency | REIT could not incur expenses for acts (issuing it units) which its alleged principal (its sub LP) lacked the capacity to perform, but it incurred expenses for the LP business as partner-agent | 467 |
| Tax Topics - General Concepts - Evidence | agreement authenticated pursuant to “comparison of hands” method | 137 |
Administrative Policy
GST/HST Memorandum 14-9-1 “Partnerships - Determining the Existence of a Partnership” March 2025
Points of interest include:
- A partnership cannot come into existence prior to the time that its partners commence to carry on business in common...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 96 | 1404 |
27 July 2021 GST/HST Interpretation 197267a - Allocation to a general partner
In commenting on the application of GST/HST to allocations of income, dividends and taxable capital gains allocations of income, dividends and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Investment Limited Partnership | ILP status can be derived from investing in other partnerships | 90 |
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(3) - Paragraph 272.1(3)(b) | a manager cannot earn its fee directly from the ILP, and the deemed FMV supply by the GP is based on industry norms | 324 |
17 September 2018 Ruling 182403
CRA ruled that distributions made by a limited partnership, which held investments, to its general and limited partners were exempt from GST/HST...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service - Paragraph (f) | partnership draws generally exempted under para. (f) without regard to s. 272.1(1) | 324 |
30 December 2013 Ruling 136499
A limited partnership (the “Partnership”) engaged in lending money and received “Set-Up” fees from the borrower, which were considered by...
25 April 2013 Internal T.I. 2013-0478511I7 F - Distribution à un commanditaire
After addressing the usual case where a capital gains distribution by a limited partnership (“SEC”) would be respected as such for ITA...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 9 - Capital Gain vs. Profit - Real Estate | real estate capital gains flowed through to limited partner retained character | 226 |
| Tax Topics - Income Tax Act - Section 96 - Subsection 96(1) - Paragraph 96(1)(f) | allocated capital gains retained their character unless re services performed by partner in course of separate business | 397 |
| Tax Topics - Income Tax Act - Section 53 - Subsection 53(1) - Paragraph 53(1)(e) - Subparagraph 53(1)(e)(iv) | services rendered by limited partner to LP gave rise to ACB increase if no s. 9 income inclusion for fee income | 133 |
Canadian Bar Association CRAG ST Round Table 9 March 2006, Q. 13
Where a corporate general partner receives reimbursements from a partnership for employee compensation costs incurred by the general partner in...
30 June 2005 Headquarters Letter RITS No. 57840
Where the general partner of an investment limited partnership is entitled to proportionate sharing of profits with limited partners (based on...
P-244 - "Partnerships - Application of Subsection 272.1(1) of the Excise Tax Act", 9 August 2004
Example 1 re single-purpose GP manager of retirement home LP
Under the written limited partnership agreement, A Co, who is the general partner and...
26 May 2004 Interpretation RITS No. 49475
In indicating that fixed fees received by a partner for providing accounting and administrative services to the partnership would be subject to...
26 May 2004 Interpretation RITS No. 36728
Before indicating that a partner of a partnership would be required to charge GST on amounts received by it from the partnership reimbursing it...
P-216 - "Registration of a Partner", 8 April 1998
Subsection 272.1(2)
See Also
FP Newspapers Inc. v. The Queen, 2013 TCC 44 (Informal Procedure)
The registrant, which was the corporate successor to an income fund, acquired, as essentially its only asset, a 49% limited partnership interest...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Financial Service | partnership draws represented financial services | 90 |
| Tax Topics - Excise Tax Act - Section 141 - Subsection 141(3) | 177 |
B.J. Northern Enterprises Ltd. v. The Queen, [1995] GSTC 12 (TCC)
A partnership that was engaged in commercial activity had three corporate partners (including the appellant) with each partner being owned by a...
Administrative Policy
May 2016 Alberta CPA Roundtable, GST Q.2
When asked to provide an example of the application of s. 272.1(2), CRA responded:
Partner Inc. is a partner of Partnership A (not a limited...
26 June 2013 Opinion Case No. 144410
The registered general partner (GP) of a limited partnership (LP A) engaged exclusively in commercial activity received supplies of services...
CBAO National Commodity Tax, Customs and Trade Section – 2013 GST/HST Questions for Revenue Canada, Q. 29 ("Real Property Investment")
An LP incurs expenses in identifying and acquiring the real estate properties. Once a potential property is identified, the LP determines the...
1 August 2003 Ruling Case No. 39572
An income fund incurred legal fees respecting negotiating the acquisition of partnership units and respecting an initial public offering of trust...
27 September 2002 Headquarter Letter Case No. 39625
The making of a capital contribution to a partnership (an individual supplying a vacant lot to the partnership) would not be included in the...
23 September, 1998 Headquarters Letter RITS No. HQR000265
GST on cost incurred in acquiring interests in a limited partnerships would not be eligible for tax credits given that "where a member of a...
P-216 Registration of a Partner 24 April 1996
Reduction for partnership reimbursements
A partner's entitlement to ITCs is subject to the restrictions as set out in subsection 272.1(2). Where a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 240 - Subsection 240(3) | 69 |
Paragraph 272.1(2)(b)
Administrative Policy
13 August 2024 GST/HST Interpretation 246538 - Determining if a limited partner of a partnership can claim an ITC
LP1, a limited partnership, had as its only activity the holding of a limited partnership interest in LP, which was engaged in developing a parcel...
Subsection 272.1(3)
Administrative Policy
28 February 2019 CBA Roundtable, Q.25
After expanding on its comments in Notice 308 as to what was an “investment limited partnership,” CRA stated:
If an LP is not an ILP, as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Investment Limited Partnership | ILP test is not a day-by-day numerical test | 531 |
GST/HST Notice 308 GST/HST and Investment Limited Partnerships July 2018
General partner may be providing its management services to LP in its separate capacity (p. 19)
[W]here a general partner of a limited partnership...
Paragraph 272.1(3)(b)
Administrative Policy
27 July 2021 GST/HST Interpretation 197267a - Allocation to a general partner
In commenting on the application of GST/HST to allocations of income, dividends and taxable capital gains allocations of income, dividends and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Investment Limited Partnership | ILP status can be derived from investing in other partnerships | 90 |
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(1) | draws to GP disproportionate to partnership capital is indicative of the receipt by it of such draws as consideration for services | 288 |
28 February 2019 CBA Roundtable, Q.15
- Does CRA have a definition of “management or administrative service” that it applies for purposes of s. 272.1(8) (other than the inclusion...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(8) | CRA will look at GP's determination of FMV | 174 |
Subsection 272.1(5)
Cases
Canada v. Raposo, 2019 FCA 208
The taxpayer and the three other members of the “Raposo clan” were involved in the sale of cocaine in the Gatineau area. CRA took the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | voidness of a partnership with an unlawful activity in Quebec applied for ETA purposes | 485 |
| Tax Topics - Statutory Interpretation - Interpretation Act - Section 8.1 | presumption of complementarity in s. 8.1 must be overridden by expansive wording in the ETA provision in question | 296 |
| Tax Topics - Income Tax Act - Section 96 | Civil Code and common law elements of partnership are similar | 96 |
See Also
Raposo v. The Queen, 2018 TCC 81, aff'd 2019 CAF 208
The appellant and the three other members of the “Raposo clan” were involved in the sale of cocaine in the Gatineau area. The Crown took the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Illegality | partnership for illegal activity was void under Art. 1417 of the Civil Code | 160 |
| Tax Topics - Income Tax Act - Section 96 | illegality of partnership business voided the partnership | 137 |
Subsection 272.1(6)
Administrative Policy
GST/HST Memoranda Series 2.7 Cancellation of Registration May 2005
(c) if a partnership is dissolved;
- A partnership's registration will be cancelled upon dissolution of the partnership. Partnership Acts of...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 271 | 83 |
Subsection 272.1(7)
Administrative Policy
1 May 2003 Draft Policy P-XX5
One of the three partners (A) of a registered partnership operating a retail store dies. The partnershp agreement has no continuance provision so...
Articles
Brent Murray, "Partner Changes: Have the 'Simplified' Partnership Rules Gotten More Complicated?", GST & Commodity Tax, Vol. XVII, No. 5, June 2003, p. 37.
Subsection 272.1(8)
Commentary
Draft s. 272.1(8)(b) provides that if the general partner (GP) of an investment limited partnership provides a management or administrative...
Administrative Policy
28 February 2019 CBA Roundtable, Q.15
In the context of ss. 272.1(8) and (3) effectively indicating that management or administrative services rendered by a general partner to an...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 272.1 - Subsection 272.1(3) - Paragraph 272.1(3)(b) | FMV of services rendered may differ from the consideration | 275 |
GST/HST Notice 308 GST/HST and Investment Limited Partnerships July 2018
Example 7, Scenario 1 respecting admin and management services provided to ILP ("LP Fund") by its GP ("Aco") for a monthly fee (taxable) and with...
Articles
Alan Kenigsberg, "Changes to Tax Treatment of ILPs under the ETA", Sales Tax, Customs & Trade, Volume XV, No 2, Federated Press, 2018, p.9
Self-assessment within a FMV range (p. 14)
[I]f the transfer pricing model … were adopted, a transfer pricing-like study would often generate a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 123 - Subsection 123(1) - Investment Limited Partnership | 293 | |
| Tax Topics - Excise Tax Act - Section 217.1 - Subsection 217.1(1) | 166 |
Allan Gelkopf, Robert Kreklewich, Zvi Halpern-Shavim, "Finance Canada Seeks Comments on New Tax Proposals Regarding Investment Limited Partnership Rules", Canadian Current Tax, Vol. 28, No.1, October 2017 p. 4
S. 272.1(8) is an FMV-deeming rather than recharacterization rule (p. 5)
The deeming rules do not explicitly require a general partner to charge...
Commentary
Relationship between s. 272.1(3) and (1)
S. 272.1(1) provides that: