I-3 - Taxation Act

Section 7.18.2 Disposition versions

2017-12-07

7.18.2. For the purposes of Chapters III.1 and III.1.1 of Title I of Book VIII, where a registered charity, a registered Canadian amateur athletic association or a registered Québec amateur athletic association holds an interest as a member of a partnership, the member shall not, solely because of its acquisition and holding of that interest, be considered to carry on any business of the partnership if

(a)  by operation of any law governing the arrangement in respect of the partnership, the liability of the member as a member of the partnership is limited;

(b)  the member deals at arm’s length with each general partner of the partnership; and

(c)  the member, or the member together with persons and partnerships with which it does not deal at arm’s length, holds interests in the partnership that have a fair market value of not more than 20% of the fair market value of the interests of all members in the partnership.

2017, c. 29, s. 18.