INCOME TAX ASSESSMENT ACT 1936

PART III - LIABILITY TO TAXATION  

Division 5A - Income of certain limited partnerships  

Subdivision C - Corporate tax modifications applicable to corporate limited partnerships  

SECTION 94M   DRAWINGS ETC. DEEMED TO BE DIVIDENDS PAID OUT OF PROFITS  

94M(1)   [Amount paid or credited deemed dividend]  

If the partnership pays or credits an amount to a partner in the partnership:


(a) against the profits or anticipated profits of the partnership; or


(b) otherwise in anticipation of the profits of the partnership;

(whether or not the amount of the profits or anticipated profits is ascertainable), the amount paid or credited is taken, for the purposes of the income tax law, to be a dividend paid by the partnership to the partner out of profits derived by the partnership.

94M(2)   [Commissioner's duty to avoid double taxation]  

If the partnership makes a subsequent distribution, the Commissioner must take such steps (if any) as are necessary to ensure that the partner is not subject to double taxation.


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