Article 62 - Payment of Tax and Computation of Chargeable Profits of General Partnerships and Limited Partnerships
(1) Tax charged under these Regulations on a GP & LP Partnership for an Accounting Period shall be attributed to the Partners in accordance with their profit share for that Accounting Period .
(2) If any tax payable by a GP & LP Partnership remains unpaid 6 months after the due and payable date the Tax Department may collect such unpaid tax from the Partners , based on their profit share.
(3) Any tax to which Article 62(2) applies shall become a joint liability of the GP & LP Partnership and each of the Partners . The extent to which a particular Partner is liable under this Article is restricted to a fraction of the total unpaid tax, that fraction being the same as his share of GP & LP Partnership profits for the Accounting Period in question. Where the profit share of a Partner is unknown this Article shall apply as if the Partners shared profits equally.
(4) In arriving at the Chargeable Profits of a GP & LP Partnership for any Accounting Period , a GP & LP Partnership is entitled to a deduction in respect of any Remuneration paid to Partners that is considered just and reasonable by the Tax Department up to a maximum of 50% of the Chargeable Profits of the GP & LP Partnership , as the case may be, for that Accounting Period as calculated prior to the deduction of Partners' Remuneration .
(5) References to a “Partner ” in Article 62(4) shall also include Disguised Partners .
Amended (as from 18th June 2014) |