2 November 1989 Income Tax Severed Letter AC58633 - Partnerships

19(1)
                                                  5-8633
                                                  R.B. Day
                                                  (613) 957-2136

NOV - 2 1989

19(1)

We are writing in reply to your letter of August 30, 1989, wherein you requested our views as to whether or not a partnership would be considered a person for the purposes of section 54.2 of the Income Tax Act.

Our Comments

Paragraph 1 of IT-90 states, in part, that "a partnership is not a person nor is it deemed to be within the meaning of the Act, notwithstanding that section 96 provides that the income of a member of a partnership is computed as if the partnership were a separate person resident in Canada."

In view of the above, it is our opinion that a partnership would not be considered a person for purposes of section 54.2.

Yours truly,

for Director Business and General Division Specialty Rulings Directorate Legislative and Intergovernmental Affairs Branch