Results 1 to 3 of 3

Thread: Getting Partnership's Tax Affairs up to date

  1. #1
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    281
    Thanks
    105
    Thanked 14 Times in 10 Posts

    Getting Partnership's Tax Affairs up to date

    Hi,

    I have a client that runs a business as a partnership with one other partner.

    They have not submitted any tax returns for the partnership (business commenced August 2009, so Feb 2010 return is overdue). I am getting their accounting records up to date, after which I will sort out their tax affairs.

    Partner A has submitted their personal income tax return for 2010, showing only their employment income received from their permanent employment (the partnership is run seperately from permanent employment). They have not included any taxable profits/losses of the partnership in this tax return.

    Partner B has not been registered for tax yet. I am going to evaluate the past few years' income to assess whether partner B should have been registered for tax in the past. They have also not accounted for any taxable profits/losses of the partnership, as they are not registered for tax yet.

    Ok, so I understand it as follows:
    They operate as equal partners, so the taxable profit/loss should have been split 50/50 between the two partners and accounted for in their personal income tax returns (as it is not a seperate entity like a pty)

    For Partner A, how would I go about including this taxable profit/loss in their personal income tax return for 2010, as this return has already been submitted and assessed last year? Do I contact SARS and ask them to reopen that tax return?

    For Partner B. If I evaluated the income and they should have been registered for tax already, do I just submit past returns and include the partnership's taxable profit/loss in the applicable periods?

    Thanks!

  2. #2
    Silver Member geraldenek's Avatar
    Join Date
    Jul 2008
    Location
    Somerset West
    Posts
    229
    Thanks
    19
    Thanked 112 Times in 80 Posts
    You will still submit the whole amount of the partnership on each individuals return - but there is a place where you tick it is a partnership and put in the %

    For B - straight foward, just lodge his returns

    For A - I will print the return and ammend the details and send that to SARS stating revised - i have found that SARS does not want to open return anymore lately even though information has been submitted incorrectly and they ask for a Notice of objection. I would suggest first revise the return and then see what they do.
    Geraldene Kapp
    Professional Tax Help
    www.mytaxhelp.co.za

  3. Thanks given for this post:

    J7J (27-Sep-11)

  4. #3
    Silver Member
    Join Date
    Apr 2011
    Location
    Jhb
    Posts
    281
    Thanks
    105
    Thanked 14 Times in 10 Posts
    Thanks!

Similar Threads

  1. Need to get date of a trial in 1983
    By Justloadit in forum General Business Forum
    Replies: 0
    Last Post: 23-Jun-11, 01:00 PM
  2. Financing & Partnership
    By eitai2001 in forum Business Finance Forum
    Replies: 2
    Last Post: 24-Aug-09, 12:24 PM
  3. [Question] Staying up-to-date with financial news
    By kevn in forum Business Finance Forum
    Replies: 2
    Last Post: 24-Jul-08, 08:52 PM
  4. How could this partnership look like?
    By Wolf in forum General Business Forum
    Replies: 11
    Last Post: 30-May-08, 11:58 AM
  5. PAYE/UIF/SDL submission date
    By duncan drennan in forum Tax Forum
    Replies: 5
    Last Post: 02-Apr-07, 04:09 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •