How does the presence of a partnership in a structure affect the analysis of whether persons are related under section 251 of the Income Tax Act (Canada)?
- A partnership is not a person for the purposes of section 251
- Where a corporation controls a partnership that controls another corporation, the first corporation will be related to the other corporation.
- A partnership that controls a corporation does not deal at arm’s length with the corporation.
- A partner who controls a partnership does not deal at arm’s length with the partnership.
Jin Wen, “Partnership and the Meaning of ‘Related'” (Oct 2019) 19:4 Tax for the Owner-Manager
