Extra-provincial registration means obtaining a licence from the Government of Ontario and/or filing any other required information, to carry on business in Ontario. All corporations incorporated (or continued) under laws other than an Ontario statute (such as the Ontario Business Corporations Act or “OBCA”) are required to file at least some information with the Government […]
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Main rules governing the taxation of Canadian partnerships
Partnership not a person The Act imposes a tax on “persons”. A partnership is not a person, nor is it deemed to be one for purposes of the Act generally. Computation of partnership income The basic regime requires computation of income (or loss) at the partnership level and an allocation of the income (or loss) […]
Canadian Partnerships distinguished from other forms of joint ventures
While the Income Tax Act of Canada provides specific rules governing the manner in which a partnership is taxed, there are no rules that apply specifically to joint ventures. The terms“syndicate” and “association” are also sometimes used to describe a form of a joint venture that is not a partnership. Generally, the CRA’s position (supported […]
Classification of foreign business or investment vehicles as partnerships
The recognition of a business or investment vehicle as a partnership under the laws of a foreign jurisdiction or its classification as a partnership under foreign tax laws does not mean that it will be considered a partnership for purposes of the Act. According to the Canada Revenue Agency (CRA), the status of a foreign […]
What is Recognized as a Partnership for Purposes of the Income Tax Act?
Although the term “domestic partnership” is sometimes used in a tax planning context to describe a partnership constituted under the laws of a Canadian province and the term “foreign partnership” is used to refer to a partnership governed by foreign law, these terms have little relevance for Canadian income tax purposes. The Act does not […]
Limited partner status under the Income Tax Act
The treatment of a particular partner under the Act can vary depending on whether the partner is considered to be a “limited partner” as defined in the Act. Among other things, if a partner is a limited partner, specific at-risk rules apply to restrict the partner’s ability to deduct partnership losses For purposes of the […]
Types of partnerships recognized by Canadian law and the Income Tax Act
Canadian commercial law generally recognizes two forms of partnerships: the general partnership and the limited partnership. The partnership statutes of most Canadian provinces now recognize a third variant, the limited liability partnership. In a general partnership, subject to the partnership agreement, all partners may take part in the management of the partnership business. Every partner […]
The Taxation of Partnerships in Canada
Under Canadian principles, a partnership is a relation that subsists between persons carrying on a business in common with a view to profit. As discussed below, the requirements for a business which is carried on in common with a view to profit are considered the three key requirements for a partnership to exist under Canadian […]
Sector-specific grants, loans and support programs for Ontario businesses
Funding for food processing companies The provincial and federal governments provide more than $3 billion in funding and support to Canada’s agriculture and agri-food sector through a variety of grant and loan programs offered through Growing Forward 2 (GF2). In addition to free workshops and resources, GF2 funds activities that encourage innovation, competitiveness and market […]
Ontario Grants and incentives for innovation and R&D
Ontario-based businesses can benefit from a number of government grant and tax incentive programs that drastically reduce the cost of performing research and development activities. Opportunities include: Industrial Research Assistance Program (IRAP) offered through the National Research Council provides financial support to qualified small and medium-sized enterprises (less than 500 employees) in Canada to help […]
