{"id":1231,"date":"2014-08-18T15:45:55","date_gmt":"2014-08-18T15:45:55","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1231"},"modified":"2014-08-18T15:45:55","modified_gmt":"2014-08-18T15:45:55","slug":"cra-says-non-residents-gain-from-negative-acb-on-partnership-interest-not-taxable","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/08\/cra-says-non-residents-gain-from-negative-acb-on-partnership-interest-not-taxable\/","title":{"rendered":"CRA says non-resident\u2019s gain from negative ACB on partnership interest not taxable"},"content":{"rendered":"<p>Distributions from a partnership in excess of a partner\u2019s basis in its partnership interest can generate a deemed gain to the partner (s. 40(3.1)).  In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/08\/2011-0417491E5.pdf\">2011-0417491E5<\/a> (recently released) the CRA said that technically such a gain realized by a non-resident partner would not be taxable in Canada \u2013 even if the partnership interest was \u201ctaxable Canadian property\u201d.  The CRA considers this technical (tax free) result to be contrary to tax policy.  Accordingly, the CRA has advised the Department of Finance and would seek to tax any such gain under the general anti-avoidance rule if a transaction resulting in the gain was an \u201cavoidance transaction\u201d (under s. 245(3)).  Furthermore, in the CRA\u2019s view, the partner would still have an obligation to file a Canadian tax return reporting the deemed gain (under s. 150(1)(a)(i)(C)).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Distributions from a partnership in excess of a partner\u2019s basis in its partnership interest can generate a deemed gain to the partner (s. 40(3.1)).  In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/08\/2011-0417491E5.pdf\">2011-0417491E5<\/a> (recently released) the CRA said that technically such a gain realized by a&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1231","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1231","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1231"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1231\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}