880 Partnership returns

Summary

An inspector may by notice require the precedent acting partner in a partnership to deliver a return in the prescribed form showing the sources of partnership income, the amount derived from each source, and such further particulars as the notice may require. The income to be returned is to be computed in accordance with the provisions of the Income Tax Acts.

Chapter 3 of Part 41A should be consulted as regards the making of partnership returns in the context of Self Assessment.

Details

(1) A “precedent partner” has the meaning set out in Part 43, and the word “prescribed” means prescribed by the Revenue Commissioners.

(2) This section requires the precedent partner of any partnership, if requested to do so by an inspector, within a specified time limit and in relation to any year of assessment, to return in the prescribed form —

• all the partnership’s sources of income,
• the amount of income from each source, and
• any information, accounts, statements and other details requested on the prescribed form.

The information, accounts and statements requested would include the financial information, accounts or statements from which the adjusted profits and losses were computed and would include balance sheet details where prepared.

(3) The amount of income from any source to be shown on a tax return is the income computed in accordance with the Income Tax Acts and is for a year ending on the 31st December or, in the case of income from a trade or profession, the income to be shown on the return is the income of an account, or where there is more than one account, accounts, made up to a date in that tax year.

An account made up for a period of one year to a date falling in the period from 1 January 2002 to 5 April 2002, is deemed to be an account made up to a date within the short tax year 2001 as well as being an account made up to a date in the tax year 2002.

(4) A person who submits a tax return on the Revenue prescribed tax return form is deemed to have done so on foot of a request from an inspector. This ensures that, where a person delivers a return in the prescribed form, it is not necessary, in any penalty proceedings, to prove that the return was made pursuant to a notice under this section.

(5) Where, on request by an inspector, the precedent partner of any partnership is required, within the time limit and in relation to the period specified in the inspector’s notice, to submit a signed statement of the amount of the profits or gains of the partnership, the statement must list all the sources of the profits or gains and the Schedules under which each source is chargeable to tax.

(6) The statement to be made by the precedent partner must carry a declaration that —

• the statement properly describes the sources of income of the partnership,
• the income from each source is correct, and
• the deductions which have been claimed are only those to which there is a legal entitlement.

Relevant Date: Finance Act 2019