Income Tax Act — I-3.3 96
rsons, as the case may be, shall pay forthwith to the Receiver General the amount, if any, by which the penalty so assessed exceeds the total of all amounts previously paid on account of that penalty. Foreign partnerships (8) For the purposes of this Act, where at a particular time a person resident in Canada becomes a member of a partnership, or a person who is a member of a partnership becomes resident in Canada, and immediately before the particular time no member of the partnership is resident in Canada, the following rules apply for the purpose of computing the partnership’s income for fiscal periods ending after the particular time: (a) where, at or before the particular time, the partnership held depreciable property of a prescribed class (other than taxable Canadian property), (i) no amount shall be included in determining the amounts for any of A, C, D and F to I in the definition undepreciated capital cost in subsection 13(21) in respect of the acquisition or disposition before the particular time of the property, and (ii) where the property is the partnership’s property at the particular time, the property shall be deemed to have been acquired, immediately after the particular time, by the partnership at a capital cost equal to the lesser of its fair market value and its capital cost to the partnership otherwise determined; (b) in the case of the partnership’s property that is inventory (other than inventory of a business carried on in Canada) or non-depreciable capital property (other than taxable Canadian property) of the partnership at the particular time, its cost to the partnership shall be deemed to be, immediately after the particular time, equal to the lesser of its fair market value and its cost to the partnership otherwise determined; and (c) any loss in respect of the disposition of a property (other than inventory of a business carried on in Canada or taxable Canadian property) by the partnership before the particular time shall be deemed to be nil. (d) [Repealed, 2016, c. 12, s. 32] Application of foreign partnership rule (9) For the purposes of applying subsection (8) and this subsection, (a) where it can reasonably be considered that one of the main reasons that a member of a partnership is resident in Canada is to avoid the application of subsection (8), the member is deemed not to be resident in Canada; and (b) where at any time a particular partnership is a member of another partnership, (i) each person or partnership that is, at that time, a member of the particular partnership is deemed to be a member of the other partnership at that time, (ii) each person or partnership that becomes a member of the particular partnership at that time is deemed to become a member of the other partnership at that time, and (iii) each person or partnership that ceases to be a member of the particular partnership at that time is deemed to cease to be a member of the other partnership at that time. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] R.S., 1985, c. 1 (5th Supp.), s. 96; 1994, c. 7, Sch. II, s. 72, Sch. VIII, s. 40, c. 8, s. 11, c. 21, s. 44; 1995, c. 3, s. 25, c. 21, s. 33; 1996, c. 21, s. 17; 1997, c. 25, s. 21; 1998, c. 19, s. 123; 2000, c. 12, s. 142, c. 19, s. 15; 2001, c. 17, s. 74; 2003, c. 28, s. 10; 2007, c. 29, s. 7; 2011, c. 24, s. 20; 2013, c. 34, ss. 71, 228, c. 40, s. 43; 2016, c. 12, s. 32; 2017, c. 33, s. 31; 2018, c. 27, s. 8 2023, c. 26, s. 21 2024, c. 15, s. 25 2024, c. 17, s. 22 2024, c. 17, s. 80 2026, c. 3, s. 30