Commentary

A7.313 Promoters of tax avoidance schemes—partnerships

Administration and compliance

A7.313 Promoters of tax avoidance schemes—partnerships

A7.313 Promoters of tax avoidance schemes—partnerships

For the latest New Development, see ND.1740.

Promoters of tax avoidance schemes who satisfy one or more 'threshold conditions' relating to previous behaviour or who regularly promote avoidance schemes which are defeated are subject to a compliance regime. For an overview of the regime, see A7.301. This article considers how the regime discussed in A7.302–A.311 applies to partnerships.

The promoters of tax avoidance schemes rules are also referred to as 'POTAS'.

Promoters of tax avoidance schemes—partnerships

Where persons are carrying on a business in partnership, the partnership1 is treated as being a person for the purposes of the promoters of tax avoidance scheme rules2 and the main provisions of the legislation apply to partnerships with relevant modifications. This includes limited partnerships3, but not limited liability partnerships, as they are bodies corporate and treated as such for the purposes of the legislation.4

A partnership is regarded as the same partnership and same person despite changes in the members of the partnership, as long as there is at least one person who was a member of the partnership before and after the change5.

The partnership is deemed to have done any act itself that bound the members or to have failed to comply with any obligation of the firm with which the members failed to comply. However, those provisions only apply to

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