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The Canadian Limited Partnership is increasingly used by investors for conducting international transactions and investment holding.
The Limited Partnership is well established as an attractive holding arrangement for foreign investors with portfolios or other investments outside Canada.
Although it does not have separate legal status, the Limited Partnership is a transparent vehicle for income tax purposes in Canada.
Notwithstanding the absence of legal personality, where a Canadian Limited Partnership holds US portfolio investments, it may elect corporate tax treatment under US tax law while still maintaining its transparent taxation status under Canadian law.