21 December 2022 Internal T.I. 2019-0826411I7 - Classification of a Burkina Faso SARL -- summary under Corporation

Regarding the classification of a Burkina Faso limited liability company (S.A.R.L.), the Directorate stated that, like a Canadian corporation, such a SARL “has legal personality separate from that of its members; it owns its own property; it has its own obligations; and the liability of its members is limited since they are liable for the SARL’s corporate debts only up to the amount of their contributions.” It also had partnership features, e.g., a provision in the governing Act providing that a SARL “is created by (one or more) persons that agree, through an agreement, to contribute, to an activity, cash, or in-kind or services assets for the purpose of sharing profits or enjoying revenues that may derive therefrom.” Overall, its attributes were closer to those of a Canadian corporation than of a partnership, so that it was to be characterized as a corporation for ITA purposes.