Limited Partnerships

[jrc]

Some years ago limited partnerships were in vogue as a means of being able to pass losses onto the 'limited partners' whilst capping their general liability for partnership debts.

Whatever the effect on non-tax liabilities there has now been a court case giving the taxation office the ability to go after the limited partners notwithstanding any limitations in the partnership agreement

http://www.austlii.edu.au/au/cases/nsw/NSWSC/2013/184.html

 

[AXXO]

You are right they are caught by Schedule 1 of the Tax Administration Act the GST Act & general interest charge (GIC) in relation to those taxes by virtue of the the definition of partners to include limited partners under those tax laws.

Another example of the ATO not wanting to miss out on collecting any tax debts from anybody.