• Treatment of partnerships

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Where a CFC is a partner in a partnership, the CFC's share of the partnership income must be taken into account. This means that the partnership must also keep proper accounts. If the partnership does not keep proper accounts, the CFC will fail the active income test.

    Has the CFC and every partnership in which it was a partner kept proper accounts that give a true and fair view?

    Yes

    Read on.

    No

    The CFC has failed the active income test. Go straight to part 3.

    Last modified: 05 Dec 2006QC 17522