Your shopping cart is empty

The ATO has issued a Decision Impact Statement in relation to the Supreme Court of New South Wales decision in FCT v McGuire [2013] NSWSC 184.

The case concerned the application of s 60 of the Partnership Act 1892 (NSW) to taxation liabilities of a partnership imposed on limited partners.

The taxpayers were limited partners in a limited partnership. The partnership had an RBA deficit debt of $354,246.04, and this liability was imposed jointly and severally on the partners under s 444-30 of Schedule 1 to the Taxation Administration Act 1953 (TAA). The taxpayers contended that, under the terms of the partnership deed and s 60(1) of the Partnership Act 1892 (State Act), they were not liable for the amount of the debt.

The Court held that s 60(1) of the State Act did not apply to the liability in these proceedings. It found that s 60(1) applies to liabilities incurred by the general partner of the partnership as agent of the partnership. Section 444-30, on the other hand, imposes liabilities directly on the partners. The Decision Impact Statement states that this is consistent with the Commissioner's submissions to the Court.


Media Release Search
Eg. TD 2005/D52 ALL words EXACT phrase WITHOUT words Date range
From To