Partnerships: Contract Settlements - General Approach
For the years 1994-95 onwards for ‘new’ partnerships and 1997-98 onwards for ‘old’ partnerships, all partnership income etc. is assessable on the individual partners. There will be no partnership contract settlements covering those liabilities.
In a partnership enquiry, there is not the same need for withholding the issue of a formal closure notice as there is in the case of an SA enquiry into an individual’s personal return.
In any case where the enquiry covers both SA and earlier years it will, as in the past, remain the responsibility of the partnership district to seek to make a partnership contract settlement but only in respect of those pre-SA years.