164. Payments under partnership agreements.

It is open to the parties who enter into a partnership agreement or an agreement by way of compromise on the death or retirement of a partner either:

  1.  

    (1)     to frame their agreement so as to make any payment under it a capital payment even though it may be measured by the fluctuating profits of the business in future years1 or the profits when received of past years2, and even though it may be paid in instalments3; or

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    (2)     to make that payment an annual payment4