sec.141Treatment of partnerships and unincorporated bodies

sec.141 Treatment of partnerships and unincorporated bodies

Subject to this section, the tax laws apply to a partnership or unincorporated body as if the partnership or unincorporated body were a person. An obligation or liability that, apart from this subsection, would be imposed by a tax law on a person that is a partnership or unincorporated body, is imposed on each partner or management member of the body, but may be discharged by any of the partners or management members. An amount that, apart from this subsection, would be payable under a tax law by a person that is a partnership or unincorporated body is jointly and severally payable by the partners or management members of the body. If, because of the operation of subsection (1) , an offence against a provision of a tax law is taken to have been committed by a partnership or unincorporated body, the offence is taken to have been committed by each of the partners or management members of the body. However, it is a defence for a partner or management member to prove— if the partner or management member was in a position to influence the conduct of the partnership or body in relation to the offence—the partner or management member exercised reasonable diligence to ensure the partnership or body complied with the provision; or the partner or management member was not in a position to influence the conduct of the partnership or body in relation to the offence. (sec.141-ssec.1) Subject to this section, the tax laws apply to a partnership or unincorporated body as if the partnership or unincorporated body were a person. (sec.141-ssec.2) An obligation or liability that, apart from this subsection, would be imposed by a tax law on a person that is a partnership or unincorporated body, is imposed on each partner or management member of the body, but may be discharged by any of the partners or management members. (sec.141-ssec.3) An amount that, apart from this subsection, would be payable under a tax law by a person that is a partnership or unincorporated body is jointly and severally payable by the partners or management members of the body. (sec.141-ssec.4) If, because of the operation of subsection (1) , an offence against a provision of a tax law is taken to have been committed by a partnership or unincorporated body, the offence is taken to have been committed by each of the partners or management members of the body. (sec.141-ssec.5) However, it is a defence for a partner or management member to prove— if the partner or management member was in a position to influence the conduct of the partnership or body in relation to the offence—the partner or management member exercised reasonable diligence to ensure the partnership or body complied with the provision; or the partner or management member was not in a position to influence the conduct of the partnership or body in relation to the offence.

• (a) if the partner or management member was in a position to influence the conduct of the partnership or body in relation to the offence—the partner or management member exercised reasonable diligence to ensure the partnership or body complied with the provision; or