Specified Investment Flow-Through Partnership (SIFT Partnership)
A partnership is a specified investment flow-through partnership (SIFT partnership) for a given taxation year if it meets the following conditions:
- It is resident in Canada.
- The investments in the partnership are listed or traded on a stock exchange or other public market.
- It holds non-portfolio property.
- A Canadian resident partnership is a partnership of which all of the members are resident in Canada, a partnership formed under the laws of a province or, in the case of a partnership that has its central management and control in Canada, a partnership that would be considered resident in Canada if it were a corporation.
- “Excluded subsidiary entity” means, for a given taxation year, an entity of which the equity (shares of its capital stock, where the entity is a corporation; income or capital interests, where the entity is a trust; or interests held by its members, where the entity is a partnership) or equity-like liabilities:
- are not listed or traded on a stock exchange or other public market at any time during the year;
- are held exclusively by
- a real estate investment trust (REIT),
- a taxable Canadian corporation,
- a specified investment flow-through trust (SIFT trust),
- a SIFT partnership,
- a person or partnership that, with respect to the holding of a security of the entity, does not own any property whose value is based on a security listed on a stock exchange or traded on another public market, or
- any other excluded subsidiary entity for the taxation year.