Income Tax Act 2007 section 157

Deduction by deposit-takers: qualifying certificates of deposit

Section 157 sets out the transitional rule for treating certain older certificates of deposit, issued before 13 March 1984, as qualifying certificates of deposit for the purposes of income tax deduction at source by deposit-takers.

• Applies to certificates of deposit issued by a deposit-taker before 13 March 1984
• The terms of the certificate must provide for interest to be payable on the deposit at any time after 5 April 1985
• The certificate qualifies even if interest is also payable before 5 April 1985
• Such certificates are treated as qualifying certificates of deposit for the purposes of section 865