78. Tax chargeable on partnerships

Notwithstanding the provisions contained in section 77, every partnership shall be charged with income tax on the aggregated amount of the divisible profits as referred to in section 76 and other income, at the appropriate rate given in the Fifth Schedule to this Act, for each year of assessment and such tax shall be paid by the partnership in quarterly instalments as provided for in Chapter XIII, subject to the provisions of this section:

Where there is a divisible loss for any year of assessment, the tax shall be charged on the total amount of other income, without any set off of such divisible loss from such other income.

Notwithstanding anything to the contrary in any other provision of this Act, the share of the tax paid (other than any tax in default recovered) under subsection (1), less any amount set off against the Economic Service Charge levied under the Finance Act No.11 of 2004 paid by the partnership for that year that is attributable to each partner using the profit sharing ratio of the partnership for that year of assessment, may be set off against the income tax liability of such partner of such partnership for the same year of assessment on such share of profit and other income from such partnership, without any right to a refund or carry forward of any excess of such share of tax attributable to such partner.

Any quarterly instalment of tax payable as provided for in Chapter XIII of this Act subject to the provisions of this section and not paid on or before the due date, shall be a tax in default for the purposes of this Act and recovery action under Chapter XXVI of this Act may be instituted by the

For the purpose of sections 76, 77 and this section, the word “person” referred to in those sections, shall be read and construed as including a partnership.