Are the rules in ss. 51(1), 85.1(1) or 86(1) (which refer to a "taxpayer") available to a partnership in a reorganization where it exchanges shares of a Canadian corporation, even though those provisions refer to a "taxpayer"? CRA responded:
Based on … subsection 96(1), the CRA's practice is to treat a partnership as a person and a taxpayer when calculating income at the partnership level under Division B of Part I … .
… [A] partnership would generally be considered a "taxpayer" for the purposes of subsections 51(1), 85.1(1) and 86(1) and would therefore be entitled to rely on the rules contained therein … . [T]he fact that one of the members of the particular partnership is a non-resident of Canada would not change this.