Part 9Partnerships

Miscellaneous

F1863ALimited liability partnerships: salaried members

(1)

Subsection (2) applies at any time when conditions A to C in sections 863B to 863D are met in the case of an individual (“M”) who is a member of a limited liability partnership in relation to which section 863(1) applies.

(2)

For the purposes of the Income Tax Acts—

(a)

M is to be treated as being employed by the limited liability partnership under a contract of service instead of being a member of the partnership, and

(b)

accordingly, M's rights and duties as a member of the limited liability partnership are to be treated as rights and duties under that contract of service.

(3)

This section needs to be read with section 863G (anti-avoidance).