Tax Tip: Did you know?
Remember we said a partnership is not considered a taxpayer, but rather that the partners are taxed on their share of the profits from the partnership. What then happens when the partnership makes a loss? And also, can they manipulate their numbers to always be at a loss? The answers are in section 21(1)(b) of […] The post Tax Tip: Did you know? appeared first on The Namibian.
Black News 
Remember we said a partnership is not considered a taxpayer, but rather that the partners are taxed on their share of the profits from the partnership.
What then happens when the partnership makes a loss? And also, can they manipulate their numbers to always be at a loss?
The answers are in section 21(1)(b) of the Income Tax Act, and they are:
- Yes, they can manipulate their tax affairs and always be in a loss position.
- The same way profit is taxed in the hands of the partners, losses can also be used by the partners to reduce any other income.
Caution on the manipulation of tax affairs, the taxman has the right to question the legitimacy of certain deals though they may be legal. No need to manipulate, just pay the tax.
– Update by Lazarus Amukeshe, Hdip Tax
The post Tax Tip: Did you know? appeared first on The Namibian.
