Restriction on partner deductions: firms with specified compliance failures cannot deduct partner payments and those payments lose ordinary income character. The amendment requires that where a firm commits specified failures, the firm shall be assessed so that no deduction is allowed for any payment to a ... Summary
Restriction on partner deductions: firms with specified compliance failures cannot deduct partner payments and those payments lose ordinary income character.
The amendment requires that where a firm commits specified failures, the firm shall be assessed so that no deduction is allowed for any payment to a partner described as interest, salary, bonus, commission or remuneration when computing income under the head Profits and gains of business or profession, and such payments shall not be charged as the partner's income under the usual classification.
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