This section is concerned with the assessment to corporation tax of companies' partnership profits. The main feature of the existing income tax legislation is that a partner's share of the profits arising from a partnership trade is regarded as arising from a separate trade carried on by him, and he is assessed accordingly. This position is being preserved under corporation tax. The section is designed to secure that a company's share for an accounting period of the profits of a trade carried on in partnership will be assessable to corporation tax for that accounting period.
SECTION 32.
Question proposed: " That section 32 stands part of the Bill."
Just one question. What is the position in regard to a joint venture? A partnership is based on the 1890 Act. You can have a single transaction that is not a partnership of its nature.
I am not too sure what you mean by the term " joint venture ".
It could be an ad hoc arrangement between two companies for one particular type of transaction. It would not be classed as a partnership. I take it that is outside this legislation.
It would not be a partnership but you would have to look at each situation.
There has been a distinction made in case law in this country on this line.
Question put and agreed to.