"The Thin Blue Line Between Expressions of Interest and True Partnerships",
CCH Tax Topics
Date:
March 19 2009
The existence — or non-existence — of a partnership is a frequently litigated issue in tax cases. This is, perhaps, because a “partnership” is not defined in the Income Tax Act. [R.S.C. 1985, c. 1 (5th Supp.).] In Backman v. Canada, [[2001] 1 S.C.R. 367.] the Supreme Court of Canada confirmed that a partnership exists for income tax purposes if it satisfies the statutory requirements of a partnership under the relevant provincial law. [Ibid., at para. 17.] In most cases, the analysis ends there.
Republished with permission from CCH Canadian Limited.
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