Tutorial 1

Question 18.1

The tax treatments when there is a change of partnership during a basis year are:

CHANGE
- The current partnership is deemed to have ceased.
- New partnership has formed.
- Each partner is deemed to have ceased to derive income from old partnership.

ADJUSTED INCOME / ADJUSTED LOSS
- Accrue throughout the year.
- Apportioned on monthly basis as per profit sharing ratio.

CAPITAL ALLOWANCE
- Only partner at the end of basis period is qualified.
- New partnership - new asset.


Question 18.2






Question 18.3

The characteristics of a relationship between person before a partnership as defined in the Act under Section 2 are:
- A partnership must have the agreement between 2 parties to combined
..their rights, property, labor @ skill for the purpose of carrying business
..& sharing the profits.
- A partnership does not include Hindu joint family.
- A partnership includes joint venture, syndicate & cases where a party to
..association is itself a partnership.


Question 18.4

A partnership are not assessed to tax, but the individual partners on their share of business income are subject to income tax. 'Partners' here can refer to individuals @ companies.

The precedent partner is responsible for filling the partnership return
(form P) for each YA.


Question 18.5

No
- No sharing of rights.
- Lay Sim assist in implementing strategy.
- Management is solely carried out by Teng.
- Master - servant relationship exist.


Question 18.6



Full partners
- Have full power

Salaried partners
- No assess to loss
- Less power

Sleeping partners
- Got right of company