Does the CRA position (see 2009-0351721E5) that an associated group of Canadian-controlled private corporations can file amended T2 Schedule 23s provided that the amended allocation agreement does not change the amount allocated to any associated corporation for a taxation year for which a reassessment is statute-barred, apply respecting an amended assignment of a partner’s specified partnership business limit? CRA responded:
[A] person’s SPBL for a taxation year is the person’s proportionate share of the partnership’s notional small business limit reduced by any amount that the person assigns to a “designated member” … under subsection 125(8).
… In general terms, a person that is a member of a partnership can assign all or part of the person’s SPBL to a CCPC if the CCPC is a designated member of that partnership and meets the conditions specified by subsection 125(8).
Accordingly, where all of the conditions under subsection 125(8) are met and there is a sufficient amount of SPBL, a person can make an assignment to more than one designated member. In addition, a designated member can receive an assignment from more than one person.
Similar to the assignment of the business limit under subsection 125(3.2), an assignment of the SPBL under subsection 125(8) may be amended provided the taxation years are also not statute-barred.