10 October 2014 APFF Roundtable Q. 23, 2014-0538171C6 F - 2014 APFF Roundtable, Q. 23 - Winding-up of a partnership -- summary under Subsection 98(3)

The s. 98(5) rollover is not available where one partnership is wound up into another. What are the consequences of a partnership (SENC) ceasing to exist under the Civil Code as a result of the acquisition by a single partner (which was an SENC itself) of all interests in the first partnership, so that all the first partnership's property became property of the second? CRA responded (TaxInterpretations translation):

One of the conditions stipulated in subsection 98(3) is that all the property of the partnership has been distributed to persons who were its partners immediately before its winding-up. …[S]uch condition is not satisfied [here] because the other partners would not receive any property of the partnership on its winding-up.

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Income Tax Act - s. 98(3)
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