Hi,
Can a partnership amend thier agreement each year?
an accountantant had recommended a mom & pop partnership to amend it each year to change the profit distribution % ; so that they minimise overall tax payments.
thanks
Can a partnership amend thier agreement each year?
an accountantant had recommended a mom & pop partnership to amend it each year to change the profit distribution % ; so that they minimise overall tax payments.
Looks like Part IVA = scheme to reduce tax without any commercial rationale.
The right way to do this is for partners to declare partner salaries each year - as long as they can justify this by reference to the efforts of each partner.
https://www.ato.gov.au/law/view/document?DocID=TXR/TR20057/NAT/ATO/00001&PiT=99991231235958
Can a partnership amend thier agreement each year?
an accountantant had recommended a mom & pop partnership to amend it each year to change the profit distribution % ; so that they minimise overall tax payments.
Looks like Part IVA = scheme to reduce tax without any commercial rationale.
The right way to do this is for partners to declare partner salaries each year - as long as they can justify this by reference to the efforts of each partner.
https://www.ato.gov.au/law/view/document?DocID=TXR/TR20057/NAT/ATO/00001&PiT=99991231235958
Thank you for your reply!
cheers
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