A loan that the taxpayer made to a Manitoba general partnership consisting of two Canadian-controlled private corporations qualified for recognition as a business investment loss in the year that the debt became bad given that such loan was to be characterized for such purposes as debt owed by the partners, i.e., by Canadian-controlled private corporations. After discussing common law authorities (one of which referred to a similar civilian view), Lamarre J stated (at para. 22):
The legal view of a partnership, which is adopted by the provincial legislation, clearly states that the partnership itself does not have the capacity to be indebted. The debt of the partnership is owed by the partners....