Section 140ZD — Partnership ceases to exist

140ZD Partnership ceases to exist

(1) If a partnership ceases to exist, the persons who were partners immediately before the cessation must continue to satisfy any applicable sponsorship obligation.

(2) Section 140ZB applies as if:

(a) references to a partnership were to a partnership that ceases to exist; and

(b) references to partners of the partnership were to the persons who were partners immediately before the cessation.

(3) For the purpose of this section, a partnership ceases to exist if the dissolution of the partnership does not result in the creation of another partnership.