TaxTMI 
TaxTMI 
Dear Sir / Madam,
What's rate of tax applicable on the income earned by AOP - share of members is unknown created for the benefit of persons employed in such business?
Thanks & Regards
Bipin
Rate of Tax applicable for AOP - share of member is unknown
19 Aug 2021 
2 Replies 
2236 Views Asked by
Tax rate for AOP with unknown member shares: tax charged at maximum marginal rate unless a member's higher rate applies.
Where individual shares of members in an association of persons are indeterminate or unknown, tax is charged on the AOP's total income at the maximum marginal rate, except where a member's total income is chargeable at a higher rate, in which case that higher rate applies; an existing administrative circular contends the provision should not apply and that the ordinary rate for the AOP should be used, posing a conflict between the statute's default rule and prior circular guidance. (AI Summary)
Where individual shares of members in an association of persons are indeterminate or unknown, tax is charged on the AOP's total income at the maximum marginal rate, except where a member's total income is chargeable at a higher rate, in which case that higher rate applies; an existing administrative circular contends the provision should not apply and that the ordinary rate for the AOP should be used, posing a conflict between the statute's default rule and prior circular guidance. (AI Summary)