Income that becomes subject to Part I as a result of an s. 216 election is not considered to be earned in any particular province.
Each partner is the agent of the other partners and hence, although a partner may not himself actively participate in the business of the partnership, he is necessarily carrying on the business through his agents, i.e., the 'active' partners.
No withholding-reduction based on Cdn-resident members
7. ...Where tax is to be withheld under Part XIII because a partnership is deemed by paragraph 212(13.1)(b) to be a non-resident person, the withholding applies to the full amount of the payment even though some members of the partnership are residents of Canada. The portion of such tax withheld that is attributable to a resident member of the partnership may be claimed by him as a credit against the tax otherwise payable under Part I of the Act.
A non-resident corporation which is a member of a partnership carrying on business in Canada is subject to the branch tax.
