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:
What is the status for Canadian income tax purposes of an entity governed by the Delaware Revised Uniform Partnership Act (the "DRUPA") ?
Position:
Precision to indicate that the opinion previously given as to the status of those entities concerns the entities governed by the DRUPA that carry on business with a view to profit.
Reasons:
The entities that may have been set up for non-profit purposes would not resemble Canadian general partnerships under our common law.
XXXXXXXXXX 2000-006201
Attention: XXXXXXXXXX
December 21, 2000
Dear Sir\Madam:
Re: Delaware Revised Uniform Partnership Act
This letter is further to our recent correspondence of November 28, 2000, concerning the status for Canadian income tax purposes of an entity governed by the Delaware Revised Uniform Partnership Act (the "DRUPA").
Our analysis that lead to the November 28, 2000 opinion implicitly dealt with entities created under the DRUPA that carry on business in common with a view to profit and not with those entities that may have been set up for non-profit purposes.
It is our view that entities governed by the DRUPA that are not created to carry on business with a view to profit (in our common law sense) would not resemble Canadian partnerships and therefore would not be considered as partnerships for purposes of the Canadian Income Tax Act. Subject to the pending Supreme Court of Canada decision in Philip Douglas Backman, this view is consistent with the decision rendered by the Federal Court of Appeal (99 DTC 5602) in this matter.
Yours truly,
Marc Vanasse, CA
for Director
Resources, Partnerships and Trusts Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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