Are there further developments on CRA’s policies respecting its view of Florida and Delaware LLPs and LLLPs as corporations? CRA indicated that any such entities formed before 26 April 2017 would be accepted as partnerships for all prior years as well as all future years, provided that none of the following applies::
- one or more members of the entity, or the entity itself, takes inconsistent positions from one taxation year to another, or for the same taxation year, as between partnership or corporate treatment;
- there is a significant change in the membership or the activities of the entity; or
- the entity is being used to facilitate abusive tax avoidance.
LLPs and LLLPs of other US jurisdictions have similar attributes to those entities, and therefore the CRA views them as corporations, will also be eligible for this administrative grandfathering. Any such grandfathered entities that choose to file as a corporation must do so for all taxation years.
Any such entities formed after 26 April 2017 will be treated as corporations.