Non-interpretative - Straight application of the law
In the racing industry it is common for a group of persons to form a syndicate. The structure of a syndicate and the provisions of syndicate agreements may vary from case to case. In some cases the syndicate may meet the partnership definition for income tax purposes. If the syndicate is not a partnership then it may meet the unincorporated association or body of persons definition.
Whether a syndicate is an unincorporated body of persons for tax purposes is a question of fact in each case. If the syndicate is an unincorporated association or body of persons it is the syndicate who is supplying the animal to race rather than the individual members of the syndicate. If the syndicate does not meet the partnership definition for income tax purposes or the unincorporated association or body of persons tests then it is the individual members that are supplying the animal to race.