Partnerships
Chapter 07
A Student’s Approach to Income
Tax
Business Activities
LexisNexis
, INTRODUCTION
2
A partnership is not a person in the
Act and therefore not a taxable
entity.
Each partner is liable for tax on his
share of the taxable income from
the partnership.
2023/03/0
Prepared by BK Zwane and reviewed by R Kalidin
1
, 3 Basic calculation of the
taxable income of a partner
Each income and expense is deemed to have
been received/accrued or incurred or paid by
individual partners (according to their respective
profit-sharing ratios) on the date that the
amounts have been received/accrued or
incurred/paid by the partnership.
This method will be impractical and time-
consuming.
Even though a partnership is not a separate
person, the partnership’s taxable income must
first be calculated in terms of normal tax rules.
2023/03/0
Prepared by BK Zwane and reviewed by R Kalidin
1
Chapter 07
A Student’s Approach to Income
Tax
Business Activities
LexisNexis
, INTRODUCTION
2
A partnership is not a person in the
Act and therefore not a taxable
entity.
Each partner is liable for tax on his
share of the taxable income from
the partnership.
2023/03/0
Prepared by BK Zwane and reviewed by R Kalidin
1
, 3 Basic calculation of the
taxable income of a partner
Each income and expense is deemed to have
been received/accrued or incurred or paid by
individual partners (according to their respective
profit-sharing ratios) on the date that the
amounts have been received/accrued or
incurred/paid by the partnership.
This method will be impractical and time-
consuming.
Even though a partnership is not a separate
person, the partnership’s taxable income must
first be calculated in terms of normal tax rules.
2023/03/0
Prepared by BK Zwane and reviewed by R Kalidin
1
