Pierre Paquette, Finance Critic for the Bloc Quebecois Party and MP for Joliette, asked Finance Minister Jim Flaherty to extend the transition period for existing limited partnerships from 4 up to 10 years.

Mr. Paquette suggested that it would have been “irrepsonsible” for the government not to take action.

But his view is that limited partnerships require a longer period to “absorb the blow of this tax which amounts to 34%. The call for an extension comes in light of the “strong market response” to the Harper’s government decision to tax the revenues of limited partnerships.”

The “tax revenues lost” from conversion of corporations was considered a “concern”. But extending the four-year transition to ten years would “benefit” small investors and pensioners according to Mr. Paquestte. He then referred to the 10-year transition period allowed in the United States.

No statement was made about an extended transition for other kinds of flow-through entities such as income trusts.  And it appears that Mr. Paquette interprets the tax as being placed on revenues of limited partnerships as opposed to distributions to owners of income entitites.

A press release from the Party is posted on its web site.