In commenting on the time of disposition referred to in s. 98(1)(c) as contrasted to the time that a partnership ceases to exist as described in s. 98(1)(a) and the time of distribution of property of the partnership to its members, the Department stated.
By virtue of subsection 99(1) of the Act the fiscal period of a partnership is deemed to end when the partnership actually ceases to exist even if subsection 98(1) of the Act deems the partnership not to have ceased to exist by virtue of incomplete distributions of partnership assets. …[P]roperty distributions after cessation of the partnership means that the partnership will have at least another fiscal year end until distribution of all the assets is completed. …
Subsection 98(1) will not apply where, the affairs of a partnership are wound up at any time during its usual fiscal period and all of the partnership's property is distributed prior to, or concurrently with, the winding-up. In such a case, the winding-up of the partnership automatically brings the fiscal period to an end.