Tax credit where recipient is a partnership
18-20 Tax credit where recipient is a partnership
An entity is entitled to a credit in respect of *amounts withheld from *withholding payments made to a partnership during an income year if:
the entity has an individual interest in the net income or partnership loss of the partnership for that income year that is wholly or partly attributable to those withholding payments; and
the *income tax return of the partnership for the income year has been lodged with the Commissioner; and
an assessment has been made of the income tax payable, or an assessment has been made that no income tax is payable, by the entity for the income year.
The amount of the credit is worked out using the formula:
Start formula Amounts withheld times start fraction Individual interest over Net income/partnership loss end fraction end formula
where:
amounts withheld means the sum of the *amounts withheld from the *withholding payments.
individual interest means so much of the individual interest of the partner as is attributable to the *withholding payments.
net income/partnership loss means so much of the net income or partnership loss for that income year as is attributable to the *withholding payments.
This Act’s bill:Second reading speech
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.