INCOME TAX ASSESSMENT ACT 1936 - SECT 94M Drawings etc. deemed to be dividends paid out of profits

INCOME TAX ASSESSMENT ACT 1936 - SECT 94M

  (1)   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.

  (2)   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.