{"id":1407,"date":"2015-01-26T15:38:38","date_gmt":"2015-01-26T15:38:38","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1407"},"modified":"2015-01-26T15:38:38","modified_gmt":"2015-01-26T15:38:38","slug":"cra-would-deny-request-for-change-to-fiscal-period-of-partnership","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2015\/01\/cra-would-deny-request-for-change-to-fiscal-period-of-partnership\/","title":{"rendered":"CRA would deny request for change to fiscal period of partnership"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-0529311E5.pdf\">2014-0529311E5<\/a>, the CRA considered a hypothetical case where a partner was selling its partnership interest and wished to cause a fiscal year end for the partnership before the sale (under s. 249.1(7)).\u00a0 This change would allow the departing partner access to the partnership\u2019s losses realized before the sale.\u00a0 Without this change, the partnership\u2019s losses could be reduced by the partnership\u2019s profits realized after the sale and before the end of the partnership\u2019s fiscal period.\u00a0 The rule in s. 96(1.01) would be of no assistance to the departing partner, as the losses might be eliminated by the end of the partnership\u2019s fiscal period.\u00a0 The CRA said it would deny the request to change the partnership\u2019s fiscal period on these facts because a change in fiscal year is allowed only where the change is prompted solely by sound business reasons.\u00a0 Personal convenience of a taxpayer or some tax benefit is not considered a sound business reason (in this context).\u00a0 Furthermore, in this case the proposed change would result in misaligning the fiscal periods of the multi-tier partnership contrary to the underlying rationale of s. 249.1(1)(c).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-0529311E5.pdf\">2014-0529311E5<\/a>, the CRA considered a hypothetical case where a partner was selling its partnership interest and wished to cause a fiscal year end for the partnership before the sale (under s. 249.1(7)).\u00a0 This change would allow the departing&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-1407","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1407","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=1407"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1407\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}