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)|