CTF - 1990 Conference Report
ADDITIONAL QUESTION
PARTNERSHIP - "PERSON"
The Department has expressed the view in the past that section 54.2 does not apply to a partnership which has disposed of all of the assets used in an active business. However, we understand that this position is under review. What is the present status of this review?
ANSWER
The Department has completed this review. A partnership is not a person and section 54.2 applies to a person. However, subsection 96(1) requires partnership income to be calculated as though the partnership were a separate person. Section 54.2 may be relevant for this purpose; accordingly, section 54.2 does apply to partnerships which have disposed of all of the assets used in an active business.
CTFNovember 1990C. TremblaySection 23