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TAXATION OF PARTNERSHIPS - Coggle Diagram

- - - - active partner participate in the conduct of partnership
      - taxed as a business source under Section 4(a)
    - - employee within the partnership
      - taxed as an employment source under Section 4(b)
    - - charged to tax as business source
      - not involved in the conduct of the partnership business
      - receive profits by virtue of their capital contribution to the partnership
  - - - first named in partnership agreement
      - if there is no partnership agreement, is specified by name or initial singly or with precedence to the other partners in the usual name of the firm
- - - - partners' wages
      - interest payable to a partner
      - private expenses charged to partnership accounts at the Provisional Adjusted Income of the partnership
  - - - provisional adjusted income less partners' wages/salaries, interest payable to a partner, private expenses of the partners
    - - share of divisible income
      - remuneration, interest, private expenses
  - - - bank accounts
      - trading stock and WIP
      - private money used in the business
      - personal drawings
      - non-trade debtors and creditors
      - contract & subcontract payments
      - partners' capital & current records
    - - the DG may require the person to have their accounts audited by a professional accountant at the individual's expense
      - chargeable income of the individual may be determined according to the best judgement of DG
      - the individual may be prosecuted and may be liable to a fine not less than RM300 and not more than RM10,000 or to imprisonment for a term not exceeding 12 months, or both