Income Tax Assessment Act 1936

SCHEDULE 2F - TRUST LOSSES AND OTHER DEDUCTIONS  

Division 272 - Interpretation  

Subdivision 272-A - Fixed entitlement to share of income or capital  

SECTION 272-15   FIXED ENTITLEMENT TO SHARE OF INCOME OR CAPITAL OF A PARTNERSHIP  

272-15(1)  
If, under a partnership agreement:

(a) a partner is entitled to a share of income that the partnership derives from time to time, or of the capital of the partnership; and

(b) the share is not able to be varied;

the partner has a fixed entitlement to that share of the income or capital.

Deemed fixed entitlement

272-15(2)  
If:

(a) a partner does not have a fixed entitlement to a share of income that the partnership derives from time to time, or of the capital of a partnership, only because the partner ' s share of the income or capital is able to be varied; and

(b) the Commissioner considers that the partner should be treated as having the fixed entitlement, having regard to:

(i) the circumstances in which the share is able to be varied; and

(ii) the likelihood of the variation happening; and

(iii) the nature of the partnership;

the partner has the fixed entitlement.