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Partner deliberately understated share of partnership profits on his tax returns

By Mark McLaughlin, March 2021

A partner in a doctor’s surgery understated his share of profits from the partnership and his behaviour in doing so was held to be deliberate for penalty purposes. 

The appellant was a doctor in a partnership. He was entitled to a fixed income as a partner in the partnership of £84,000 per annum. The partnership returns filed with HM Revenue and Customs (HMRC) for the relevant years showed that the appellant’s share of profits for the tax year 2013/14 was £77,000; the profit share shown on the partnership return for 2014/15 was £48,601. 

The appellant filed self-assessment tax returns showing: (1) 2013/14: profits from partnership £37,230; (2) 2014/15: profits from partnership £35,661. The ‘white space’ section of the 2013/14 return included the statement &lsquo

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