Retiring partner's income – is it assessable?
This applies, for example, if it is called a payment for giving up rights or relating to years of service as a partner), when the retirement occurs or when the payment is made (e.g. even if they retire before it is actually paid).
However, if the payment relates to net income of the partnership which is from sources outside Australia and is attributable to a period when a partner was not a tax resident of Australia, then it would not be assessable.
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This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
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