Tax cases

Which calculation?

In 1983 R G and K formed a partnership as chartered accountants. In 1990 R left and commenced legal proceedings against his former partners although this action was later stayed. The company appealed against partnership assessments made between 1987 and 1991. They agreed a profit adjustment for the year ended 6 April 1990 so that R received an additional £6 327. G and K did this by adjusting the profit shares so that all partners received an additional profit share and R's additional share represented 15% of a total amount. G and K received their profit shares of this total amount and then reduced their salaries by the same total amount in the proportions in which they shared profits between them. This created negative salaries for two of the partners. They argued that R's salary could not be increased as this...