In a representation sent to the Revenue last week, the APP said the proposal was ‘highly discriminatory’ because it penalised partners in firms which prepare their accounts on a cash basis – these partners face a ‘catch-up’ charge. The APP also pointed out partners may end up being taxed on work and profits relating to retired or deceased partners.
The APP said the catch-up charge would result in double taxation, and some relief should therefore be given to partners.
The representation also carries critical comments on the proposed legislation to ensure that profits of all trading businesses are based on accounting standards.
The APP claimed that the proposal would ‘amount to serious over-regulation and significantly increased compliance costs for firms’.
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