Income Tax Act 2007 Schedule 2 paragraph 172

Application of Income Tax Acts from year to year

Paragraph 172 ensures that the Income Tax Act 2007 is treated as a continuing annual enactment by applying the year-to-year continuity rule from section 820 of ICTA.

• Section 820 of ICTA provides that Income Tax Acts continue in force from one tax year to the next without the need for annual re-enactment.
• This continuity rule is applied to the Income Tax Act 2007 as though the Act had already been in force on 5 April 2007, the day before the 2007–08 tax year began.
• The effect is to ensure there is no gap in the operation of the Act and that it automatically carries forward into each subsequent tax year.
• This is a standard transitional provision that preserves the seamless year-on-year application of income tax legislation.