Document ID: chunk:federal_register_of_legislation:C2025C00014:section:94m
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 94M
Character Range: 624630–625357

94M  Drawings etc. deemed to be dividends paid out of profits
 (1) If the partnership pays or credits an amount to a partner in the partnership:
 (a) against the profits or anticipated profits of the partnership; or
 (b) otherwise in anticipation of the profits of the partnership;
(whether or not the amount of the profits or anticipated profits is ascertainable), the amount paid or credited is taken, for the purposes of the income tax law, to be a dividend paid by the partnership to the partner out of profits derived by the partnership.
 (2) If the partnership makes a subsequent distribution, the Commissioner must take such steps (if any) as are necessary to ensure that the partner is not subject to double taxation.