Income Tax Act

Marginal note:General Rules

• 96 (1) Where a taxpayer is a member of a partnership, the taxpayer’s income, non-capital loss, net capital loss, restricted farm loss and farm loss, if any, for a taxation year, or the taxpayer’s taxable income earned in Canada for a taxation year, as the case may be, shall be computed as if

  • (a) the partnership were a separate person resident in Canada;

  • (b) the taxation year of the partnership were its fiscal period;

  • (c) each partnership activity (including the ownership of property) were carried on by the partnership as a separate person, and a computation were made of the amount of

    • (i) each taxable capital gain and allowable capital loss of the partnership from the disposition of property, and

    • (ii) each income and loss of the partnership from each other source or from sources in a particular place,

    for each taxation year of the partnership;

  • (d) each income or loss of the partnership for a taxation year were computed as if

    • (i) this Act were read without reference to sections 34.1 and 34.2, subsection 59(1), paragraph 59(3.2)(c.1) and subsections 66.1(1), 66.2(1) and 66.4(1), and

    • (ii) no deduction were permitted under any of section 29 of the Income Tax Application Rules, subsection 65(1) and sections 66, 66.1, 66.2, 66.21 and 66.4;

  • (e) each gain of the partnership from the disposition of land used in a farming business of the partnership were computed as if this Act were read without reference to paragraph 53(1)(i);

  • (e.1) the amount, if any, by which

    • (i) the total of all amounts determined under paragraphs 37(1)(a) to 37(1)(c.1) in respect of the partnership at the end of the taxation year

    exceeds

    • (ii) the total of all amounts determined under paragraphs 37(1)(d) to 37(1)(g) in respect of the partnership at the end of the year

    were deducted under subsection 37(1) by the partnership in computing its income for the year;

  • (f) the amount of the income of the partnership for a taxation year from any source or from sources in a particular place were the income of the taxpayer from that source or from sources in that particular place, as the case may be, for the taxation year of the taxpayer in which the partnership’s taxation year ends, to the extent of the taxpayer’s share thereof; and

  • (g) the amount, if any, by which

    • (i) the loss of the partnership for a taxation year from any source or sources in a particular place,

    exceeds

    • (ii) in the case of a specified member (within the meaning of the definition specified member in subsection 248(1) if that definition were read without reference to paragraph (b) thereof) of the partnership in the year, the amount, if any, deducted by the partnership by virtue of section 37 in calculating its income for the taxation year from that source or sources in the particular place, as the case may be, and

    • (iii) in any other case, nil

    were the loss of the taxpayer from that source or from sources in that particular place, as the case may be, for the taxation year of the taxpayer in which the partnership’s taxation year ends, to the extent of the taxpayer’s share thereof.

• Marginal note:Allocation of share of income to retiring partner

  (1.1) For the purposes of subsection 96(1) and sections 34.1, 34.2, 101, 103 and 249.1,

  • (a) where the principal activity of a partnership is carrying on a business in Canada and its members have entered into an agreement to allocate a share of the income or loss of the partnership from any source or from sources in a particular place, as the case may be, to any taxpayer who at any time ceased to be a member of

    • (i) the partnership, or

    • (ii) a partnership that at any time has ceased to exist or would, but for subsection 98(1), have ceased to exist, and either

      • (A) the members of that partnership, or

      • (B) the members of another partnership in which, immediately after that time, any of the members referred to in clause 96(1.1)(a)(ii)(A) became members

      have agreed to make such an allocation

    or to the taxpayer’s spouse, or common-law partner, estate or heirs or to any person referred to in subsection 96(1.3), the taxpayer, spouse, or common-law partner, estate, heirs or person, as the case may be, shall be deemed to be a member of the partnership; and

  • (b) all amounts each of which is an amount equal to the share of the income or loss referred to in this subsection allocated to a taxpayer from a partnership in respect of a particular fiscal period of the partnership shall, notwithstanding any other provision of this Act, be included in computing the taxpayer’s income for the taxation year in which that fiscal period of the partnership ends.

• Marginal note:Deemed dividend of SIFT partnership

  (1.11) If a SIFT partnership is liable to tax for a taxation year under Part IX.1,

  • (a) paragraph (1)(f) is to be read as if the expression “the amount of the income of the partnership for a taxation year from any source or from sources in a particular place” were read as “the amount, if any, by which the income of the partnership for a taxation year from any source or from sources in a particular place exceeds, in respect of each such source, the portion of the partnership’s taxable non-portfolio earnings for the taxation year that is applicable to that source”; and

  • (b) the partnership is deemed to have received a dividend in the taxation year from a taxable Canadian corporation equal to the amount by which the partnership’s taxable non-portfolio earnings for the taxation year exceeds the tax payable by the partnership for the taxation year under Part IX.1.

• Marginal note:Disposal of right to share in income, etc.

  (1.2) Where in a taxation year a taxpayer who has a right to a share of the income or loss of a partnership under an agreement referred to in subsection 96(1.1) disposes of that right,

  • (a) there shall be included in computing the taxpayer’s income for the year the proceeds of the disposition; and

  • (b) for greater certainty, the cost to the taxpayer of each property received by the taxpayer as consideration for the disposition is the fair market value of the property at the time of the disposition.

• Marginal note:Deductions

  (1.3) Where, by virtue of subsection 96(1.1) or 96(1.2), an amount has been included in computing a taxpayer’s income for a taxation year, there may be deducted in computing the taxpayer’s income for the year the lesser of

  • (a) the amount so included in computing the taxpayer’s income for the year, and

  • (b) the amount, if any, by which the cost to the taxpayer of the right to a share of the income or loss of a partnership under an agreement referred to in subsection 96(1.1) exceeds the total of all amounts in respect of that right that were deductible by virtue of this subsection in computing the taxpayer’s income for previous taxation years.

• Marginal note:Right deemed not to be capital property

  (1.4) For the purposes of this Act, a right to a share of the income or loss of a partnership under an agreement referred to in subsection 96(1.1) shall be deemed not to be capital property.

• Marginal note:Disposition by virtue of death of taxpayer

  (1.5) Where, at the time of a taxpayer’s death, the taxpayer has a right to a share of the income or loss of a partnership under an agreement referred to in subsection 96(1.1), subsections 70(2) to 70(4) apply.

• Marginal note:Members of partnership deemed to be carrying on business in Canada

  (1.6) Where a partnership carries on a business in Canada at any time, each taxpayer who is deemed by paragraph 96(1.1)(a) to be a member of the partnership at that time is deemed to carry on the business in Canada at that time for the purposes of subsection 2(3), sections 34.1 and 150 and (subject to subsection 34.2(7)) section 34.2.

• Marginal note:Gains and losses

  (1.7) Notwithstanding subsection (1) or section 38, where in a particular taxation year of a taxpayer, the taxpayer is a member of a partnership with a fiscal period that ends in the particular year, the amount of a taxable capital gain (other than that part of the amount that can reasonably be attributed to an amount deemed under subsection 14(1.1) to be a taxable capital gain of the partnership), allowable capital loss or allowable business investment loss of the taxpayer for the particular year determined in respect of the partnership is the amount determined by the formula

  A × B/C

  where

  A

  is the amount of the taxpayer’s taxable capital gain (other than that part of the amount that can be attributed to an amount deemed under subsection 14(1.1) to be a taxable capital gain of the partnership), allowable capital loss or allowable business investment loss, as the case may be, for the particular year otherwise determined under this section in respect of the partnership;

  B

  is the relevant fraction that applies under paragraph 38(a), (a.1), (a.2), (b) or (c) for the particular year in respect of the taxpayer; and

  C

  is the fraction that was used under section 38 for the fiscal period of the partnership.

• Marginal note:Application

  (1.71) Where the fraction referred to in the description of C in subsection (1.7) cannot be determined by a taxpayer in respect of a fiscal period of a partnership that ended before February 28, 2000, or includes February 28, 2000 or October 17, 2000, for the purposes of subsection (1.7), the fraction is deemed to be

  • (a) where the fiscal period ended before or began before February 28, 2000, 3/4;

  • (b) where the fiscal period began after February 27, 2000 and before October 18, 2000, 2/3; and

  • (c) in any other case, 1/2.

• Marginal note:Loan of property

  (1.8) For the purposes of subsection 56(4.1) and sections 74.1 and 74.3, where an individual has transferred or lent property, either directly or indirectly, by means of a trust or by any other means whatever, to a person and the property or property substituted therefor is an interest in a partnership, the person’s share of the amount of any income or loss of the partnership for a fiscal period in which the person was a specified member of the partnership shall be deemed to be income or loss, as the case may be, from the property or substituted property.

• Marginal note:Construction

  (2) The provisions of this subdivision shall be read and construed as if each of the assumptions in paragraphs 96(1)(a) to 96(1)(g) were made.

• Marginal note:Limited partnership losses

  (2.1) Notwithstanding subsection 96(1), where a taxpayer is, at any time in a taxation year, a limited partner of a partnership, the amount, if any, by which

  • (a) the total of all amounts each of which is the taxpayer’s share of the amount of any loss of the partnership, determined in accordance with subsection 96(1), for a fiscal period of the partnership ending in the taxation year from a business (other than a farming business) or from property

  exceeds

  • (b) the amount, if any, by which

    • (i) the taxpayer’s at-risk amount in respect of the partnership at the end of the fiscal period

    exceeds the total of

    • (ii) the amount required by subsection 127(8) in respect of the partnership to be added in computing the investment tax credit of the taxpayer for the taxation year,

    • (iii) the taxpayer’s share of any losses of the partnership for the fiscal period from a farming business, and

    • (iv) the taxpayer’s share of

      • (A) the foreign resource pool expenses, if any, incurred by the partnership in the fiscal period,

      • (B) the Canadian exploration expense, if any, incurred by the partnership in the fiscal period,

      • (C) the Canadian development expense, if any, incurred by the partnership in the fiscal period, and

      • (D) the Canadian oil and gas property expense, if any, incurred by the partnership in the fiscal period,

  shall

  • (c) not be deducted in computing the taxpayer’s income for the year,

  • (d) not be included in computing the taxpayer’s non-capital loss for the year, and

  • (e) be deemed to be the taxpayer’s limited partnership loss in respect of the partnership for the year.

• Marginal note:At-risk amount

  (2.2) For the purposes of this section and sections 111 and 127, the at-risk amount of a taxpayer, in respect of a partnership of which the taxpayer is a limited partner, at any particular time is the amount, if any, by which the total of

  • (a) the adjusted cost base to the taxpayer of the taxpayer’s partnership interest at that time, computed in accordance with subsection 96(2.3) where applicable,

  • (b) where the particular time is the end of the fiscal period of the partnership, the taxpayer’s share of the income of the partnership from a source for that fiscal period computed under the method described in subparagraph 53(1)(e)(i), and

  • (b.1) where the particular time is the end of the fiscal period of the partnership, the amount referred to in subparagraph 53(1)(e)(viii) in respect of the taxpayer for that fiscal period

  exceeds the total of

  • (c) all amounts each of which is an amount owing at that time to the partnership, or to a person or partnership not dealing at arm’s length with the partnership, by the taxpayer or by a person or partnership not dealing at arm’s length with the taxpayer, other than any amount deducted under subparagraph 53(2)(c)(i.3) in computing the adjusted cost base, or under section 143.2 in computing the cost, to the taxpayer of the taxpayer’s partnership interest at that time, and

  • (d) any amount or benefit that the taxpayer or a person not dealing at arm’s length with the taxpayer is entitled, either immediately or in the future and either absolutely or contingently, to receive or to obtain, whether by way of reimbursement, compensation, revenue guarantee, proceeds of disposition, loan or any other form of indebtedness or in any other form or manner whatever, granted or to be granted for the purpose of reducing the impact, in whole or in part, of any loss that the taxpayer may sustain because the taxpayer is a member of the partnership or holds or disposes of an interest in the partnership, except to the extent that the amount or benefit is included in the determination of the value of J in the definition cumulative Canadian exploration expense in subsection 66.1(6), of M in the definition cumulative Canadian development expense in subsection 66.2(5) or of I in the definition cumulative Canadian oil and gas property expense in subsection 66.4(5) in respect of the taxpayer, or the entitlement arises

    • (i) by virtue of a contract of insurance with an insurance corporation dealing at arm’s length with each member of the partnership under which the taxpayer is insured against any claim arising as a result of a liability incurred in the ordinary course of carrying on the partnership business,

    • (ii) [Repealed, 1996, c. 21, s. 17(4)]

    • (iii) as a consequence of the death of the taxpayer,

    • (iv) and (v) [Repealed, 1998, c. 19, s. 123(3)]

    • (vi) in respect of an amount not included in the at-risk amount of the taxpayer determined without reference to this paragraph, or

    • (vii) because of an excluded obligation (as defined in subsection 6202.1(5) of the Income Tax Regulations) in relation to a share issued to the partnership by a corporation,

  and, for the purposes of this subsection,

  • (e) where the amount or benefit to which the taxpayer or the person is entitled at any time is provided by way of an agreement or other arrangement under which the taxpayer or the person has a right, either immediately or in the future and either absolutely or contingently (otherwise than as a consequence of the death of the taxpayer), to acquire other property in exchange for all or any part of the partnership interest, for greater certainty the amount or benefit to which the taxpayer or the person is entitled under the agreement or arrangement is considered to be not less than the fair market value of the other property at that time, and

  • (f) where the amount or benefit to which the taxpayer or the person is entitled at any time is provided by way of a guarantee, security or similar indemnity or covenant in respect of any loan or other obligation of the taxpayer or the person, for greater certainty the amount or benefit to which the taxpayer or the person is entitled under the guarantee or indemnity at any particular time is considered to be not less than the total of the unpaid amount of the loan or obligation at that time and all other amounts outstanding in respect of the loan or obligation at that time.

• Marginal note:Idem

  (2.3) For the purposes of subsection 96(2.2), where a taxpayer has acquired the taxpayer’s partnership interest at any time from a transferor other than the partnership, the adjusted cost base to the taxpayer of that interest shall be computed as if the cost to the taxpayer of the interest were the lesser of

  • (a) the taxpayer’s cost otherwise determined, and

  • (b) the greater of

    • (i) the adjusted cost base of that interest to the transferor immediately before that time, and

    • (ii) nil,

  and where the adjusted cost base of the transferor cannot be determined, it shall be deemed to be equal to the total of the amounts determined in respect of the taxpayer under paragraphs 96(2.2)(c) and 96(2.2)(d) immediately after that time.

• Marginal note:Limited partner

  (2.4) For the purposes of this section and sections 111 and 127, a taxpayer who is a member of a partnership at a particular time is a limited partner of the partnership at that time if the member’s partnership interest is not an exempt interest (within the meaning assigned by subsection (2.5)) at that time and if, at that time or within 3 years after that time,

  • (a) by operation of any law governing the partnership arrangement, the liability of the member as a member of the partnership is limited (except by operation of a provision of a statute of Canada or a province that limits the member’s liability only for debts, obligations and liabilities of the partnership, or any member of the partnership, arising from negligent acts or omissions or misconduct that another member of the partnership or an employee, agent or representative of the partnership commits in the course of the partnership business while the partnership is a limited liability partnership);

  • (b) the member or a person not dealing at arm’s length with the member is entitled, either immediately or in the future and either absolutely or contingently, to receive an amount or to obtain a benefit that would be described in paragraph (2.2)(d) if that paragraph were read without reference to subparagraphs (ii) and (vi);

  • (c) one of the reasons for the existence of the member who owns the interest

    • (i) can reasonably be considered to be to limit the liability of any person with respect to that interest, and

    • (ii) cannot reasonably be considered to be to permit any person who has an interest in the member to carry on that person’s business (other than an investment business) in the most effective manner; or

  • (d) there is an agreement or other arrangement for the disposition of an interest in the partnership and one of the main reasons for the agreement or arrangement can reasonably be considered to be to attempt to avoid the application of this subsection to the member.

• Marginal note:Exempt interest

  (2.5) For the purposes of subsection 96(2.4), an exempt interest in a partnership at any time means a prescribed partnership interest or an interest in a partnership that was actively carrying on business on a regular and a continuous basis immediately before February 26, 1986 and continuously thereafter until that time or that was earning income from the rental or leasing of property immediately before February 26, 1986 and continuously thereafter until that time, where there has not after February 25, 1986 and before that time been a substantial contribution of capital to the partnership or a substantial increase in the indebtedness of the partnership and, for this purpose, an amount will not be considered to be substantial where

  • (a) the amount was used by the partnership to make an expenditure required to be made pursuant to the terms of a written agreement entered into by it before February 26, 1986, or to repay a loan, debt or contribution of capital that had been received or incurred in respect of any such expenditure,

  • (b) the amount was raised pursuant to the terms of a prospectus, preliminary prospectus or registration statement filed before February 26, 1986 with a public authority in Canada pursuant to and in accordance with the securities legislation of Canada or of any province, and, where required by law, accepted for filing by that public authority, or

  • (c) the amount was used for the activity that was carried on by the partnership on February 25, 1986 but was not used for a significant expansion of the activity

  and, for the purposes of this subsection,

  • (d) a partnership in respect of which paragraph 96(2.5)(b) applies shall be considered to have been actively carrying on a business on a regular and a continuous basis immediately before February 26, 1986 and continuously thereafter until the earlier of the closing date, if any, stipulated in the document referred to in that paragraph and January 1, 1987, and

  • (e) an expenditure shall not be considered to have been required to be made pursuant to the terms of an agreement where the obligation to make the expenditure is conditional in any way on the consequences under this Act relating to the expenditure and the condition has not been satisfied or waived before June 12, 1986.

• Marginal note:Artificial transactions

  (2.6) For the purposes of paragraph 96(2.2)(c), where at any time an amount owing by a taxpayer or a person with whom the taxpayer does not deal at arm’s length is repaid and it is established, by subsequent events or otherwise, that the repayment was made as part of a series of loans or other transactions and repayments, the amount owing shall be deemed not to have been repaid.

• Marginal note:Idem

  (2.7) For the purposes of paragraph 96(2.2)(a), where at any time a taxpayer makes a contribution of capital to a partnership and the partnership or a person or partnership with whom or which the partnership does not deal at arm’s length makes a loan to the taxpayer or to a person with whom the taxpayer does not deal at arm’s length or repays the contribution of capital, and it is established, by subsequent events or otherwise, that the loan or repayment, as the case may be, was made as part of a series of loans or other transactions and repayments, the contribution of capital shall be deemed not to have been made to the extent of the loan or repayment, as the case may be.

• Marginal note:Agreement or election of partnership members

  (3) Where a taxpayer who was a member of a partnership at any time in a fiscal period has, for any purpose relevant to the computation of the taxpayer’s income from the partnership for the fiscal period, made or executed an agreement, designation or election under or in respect of the application of any of subsections 13(4) and (16) and 14(6), section 15.2, subsections 20(9) and 21(1) to (4), section 22, subsection 29(1), section 34, clause 37(8)(a)(ii)(B), subsections 44(1) and (6), 50(1) and 80(5), (9), (10) and (11), section 80.04, subsections 86.1(2), 97(2), 139.1(16) and (17) and 249.1(4) and (6) that, but for this subsection, would be a valid agreement, designation or election,

  • (a) the agreement, designation or election is not valid unless

    • (i) it was made or executed on behalf of the taxpayer and each other person who was a member of the partnership during the fiscal period, and

    • (ii) the taxpayer had authority to act for the partnership;

  • (b) unless the agreement, designation or election is invalid because of paragraph 96(3)(a), each other person who was a member of the partnership during the fiscal period shall be deemed to have made or executed the agreement, designation or election; and

  • (c) notwithstanding paragraph 96(3)(a), any agreement, designation or election deemed by paragraph 96(3)(b) to have been made or executed by any person shall be deemed to be a valid agreement, designation or election made or executed by that person.

• Marginal note:Election

  (4) Any election under subsection 97(2) or 98(3) shall be made on or before the day that is the earliest of the days on or before which any taxpayer making the election is required to file a return of income pursuant to section 150 for the taxpayer’s taxation year in which the transaction to which the election relates occurred.

• Marginal note:Late filing

  (5) Where an election referred to in subsection 96(4) was not made on or before the day on or before which the election was required by that subsection to be made and that day was after May 6, 1974, the election shall be deemed to have been made on that day if, on or before the day that is 3 years after that day,

  • (a) the election is made in prescribed form; and

  • (b) an estimate of the penalty in respect of that election is paid by the taxpayer referred to in subsection 97(2) or by the persons referred to in subsection 98(3), as the case may be, when that election is made.

• Marginal note:Special cases

  (5.1) Where, in the opinion of the Minister, the circumstances of a case are such that it would be just and equitable

  • (a) to permit an election under subsection 97(2) or 98(3) to be made after the day that is 3 years after the day on or before which the election was required by subsection 96(4) to be made, or

  • (b) to permit an election made under subsection 97(2) to be amended,

  the election or amended election shall be deemed to have been made on the day on or before which the election was so required to be made if

  • (c) the election or amended election is made in prescribed form, and

  • (d) an estimate of the penalty in respect of the election or amended election is paid by the taxpayer referred to in subsection 97(2) or by the persons referred to in subsection 98(3), as the case may be, when the election or amended election is made,

  and where this subsection applies to the amendment of an election, that election shall be deemed not to have been effective.

• Marginal note:Penalty for late-filed election

  (6) For the purposes of this section, the penalty in respect of an election or an amended election referred to in paragraph 96(5)(a) or 96(5.1)(c) is

  • (a) where the election or amended election is made under subsection 97(2), an amount equal to the lesser of

    • (i) 1/4 of 1% of the amount by which the fair market value of the property disposed of by the taxpayer referred to therein at the time of disposition exceeds the amount agreed on by the taxpayer and the members of the partnership in the election or amended election, for each month or part of a month during the period commencing with the day on or before which the election is required by subsection 96(4) to be made and ending on the day the election or amended election is made, and

    • (ii) an amount, not exceeding $8,000, equal to the product obtained by multiplying $100 by the number of months each of which is a month all or part of which is during the period referred to in subparagraph 96(6)(a)(i); and

  • (b) where the election is made under subsection 98(3), an amount equal to the lesser of

    • (i) 1/4 of 1% of the amount by which

      • (A) the total of all amounts of money and the fair market value of partnership property received by the persons referred to therein as consideration for their interests in the partnership at the time that the partnership ceased to exist

      exceeds

      • (B) the total of each such person’s proceeds of disposition of that person’s interest in the partnership as determined under paragraph 98(3)(a),

      for each month or part of a month during the period commencing with the day on or before which the election is required by subsection 96(4) to be made and ending on the day the election or amended election is made, and

    • (ii) an amount, not exceeding $8,000, equal to the product obtained by multiplying $100 by the number of months each of which is a month all or part of which is during the period referred to in subparagraph 96(6)(b)(i).

• Marginal note:Unpaid balance of penalty

  (7) The Minister shall, with all due dispatch, examine each election and amended election referred to in paragraph 96(5)(a) or 96(5.1)(c), assess the penalty payable and send a notice of assessment to the taxpayer or persons, as the case may be, and the taxpayer or persons, as the case may be, shall pay forthwith to the Receiver General the amount, if any, by which the penalty so assessed exceeds the total of all amounts previously paid on account of that penalty.

• Marginal note:Foreign partnerships

  (8) For the purposes of this Act, where at a particular time a person resident in Canada becomes a member of a partnership, or a person who is a member of a partnership becomes resident in Canada, and immediately before the particular time no member of the partnership is resident in Canada, the following rules apply for the purpose of computing the partnership’s income for fiscal periods ending after the particular time:

  • (a) where, at or before the particular time, the partnership held depreciable property of a prescribed class (other than taxable Canadian property),

    • (i) no amount shall be included in determining the amounts for any of A, C, D and F to I in the definition undepreciated capital cost in subsection 13(21) in respect of the acquisition or disposition before the particular time of the property, and

    • (ii) where the property is the partnership’s property at the particular time, the property shall be deemed to have been acquired, immediately after the particular time, by the partnership at a capital cost equal to the lesser of its fair market value and its capital cost to the partnership otherwise determined;

  • (b) in the case of the partnership’s property that is inventory (other than inventory of a business carried on in Canada) or non-depreciable capital property (other than taxable Canadian property) of the partnership at the particular time, its cost to the partnership shall be deemed to be, immediately after the particular time, equal to the lesser of its fair market value and its cost to the partnership otherwise determined;

  • (c) any loss in respect of the disposition of a property (other than inventory of a business carried on in Canada or taxable Canadian property) by the partnership before the particular time shall be deemed to be nil; and

  • (d) where 4/3 of the cumulative eligible capital in respect of a business carried on at the particular time outside Canada by the partnership exceeds the total of the fair market value of each eligible capital property in respect of the business at that time, the partnership shall be deemed to have, immediately after that time, disposed of an eligible capital property in respect of the business for proceeds equal to the excess and to have received those proceeds.

• Marginal note:Idem

  (9) For the purpose of applying subsection 96(8), where it can reasonably be considered that one of the main reasons that there is a member of the partnership who is resident in Canada is to avoid the application of that subsection, the member shall be deemed not to be resident in Canada.