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 […]
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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 […]
Region-specific funding for businesses in Ontario
Depending on which region of Ontario you are based in, your business may be eligible for region-specific funding to support business expansion. Funding for businesses in Southwestern Ontario Southwestern Ontario Development Fund (SWODF) provides grant and loan funding for economic development in southwestern Ontario. The funds support projects that create jobs, encourage innovation, collaboration and […]
Ontario Government grants to cover the cost of hiring and training
Government grants for hiring and training abound for businesses operating in Ontario, with both federal and provincial programs offering as much as $20,000 or more to companies that hire and/or train workers. Here are just a few opportunities your business can cash in on when you hire in Ontario: Access Mitacs funding programs to benefit […]
General funding and incentives for growing Ontario businesses
Financing, government grants and support for exporters Foreign Buyer Financing from Export Development Canada (EDC) provides financing to international customers so that the agency takes on the risk of non-payment. Your customer receives extended payment terms and you receive payment according to your contract’s terms and conditions, so your business reaps the benefits of a […]
