In the old days, accountants had to operate through partnerships.  So, each year, the partnership profits were divided between the partners according to the partnership agreement and, then, each partner paid income tax on their share. Later, accountants were allowed to incorporate.  If a practice incorporated, it meant that the original partners were partners no more. Instead, they were directors of the new company and would only be taxed on their wages from the company.  Undrawn profits would remain in the new company, taxed at 12.5%.  Eventually, the plan would be to liquidate the company, thus getting the benefit of…

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