21. Partnerships
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(1) A partnership shall not be charged to tax in its own name but all income accrued to it in a year of income is to be charged on the partners for the year of income in accordance with this section.
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(2) The chargeable income of a partner for a year of income—
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(a) includes an amount equal to that proportion of the partnership assessable income for that year of income which the amount of the net partnership profit or income to which he or she is entitled under the partnership agreement, ascertained under that agreement, bears to the net partnership profit or income; or
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(b) is calculated after deducting an amount equal to that proportion of the partnership assessed loss for that year of income which the amount of the net partnership loss for which he or she is responsible under the partnership agreement, ascertained under that agreement, bears to the net partnership loss.
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(3) In this section—
“partnership assessable income” means the assessable income of the partnership calculated as if the partnership were a person chargeable to tax;
“partnership assessed loss” means an assessed loss calculated in the same manner as partnership assessable income.