MacKinlay v. Arthur Young McClelland Moores & Co., [1989] S.TC 898 (HL)

In discussing the nature of a partnership, Lord Oliver stated (p. 900):

"A partner working in the business or undertaking of the partnership is in a very different position from an employee ... If, with the agreement of his partners, he pays himself a 'salary', this merely means that he receives an additional part of the profits before they fall to be divided between the partners in the appropriate proportions. But the 'salary' remains part of the profits."

In discussing the nature of a partnership, Lord Oliver stated (p. 900):

A partner working in the business or undertaking of the partnership is in a very different position from an employee ... If, with the agreement of his partners, he pays himself a 'salary', this merely means that he receives an additional part of the profits before they fall to be divided between the partners in the appropriate proportions. But the 'salary' remains part of the profits.