Income Tax Act 2007 section 375

Nominees

Section 375 ensures that where loans, securities or shares are dealt with through a nominee or bare trustee, those transactions are treated for tax purposes as if the underlying person had carried them out directly.

• Loans made by, made to, or disposed of by a nominee are treated as made by, made to, or disposed of by the person on whose behalf the nominee acts.
• Securities or shares subscribed for, issued to, acquired, held or disposed of by a nominee are treated as subscribed for, issued to, acquired, held or disposed of by the underlying person.
• The nominee rules extend equally to bare trustees acting on behalf of a person.
• These provisions apply across the whole of this Part of the Act, ensuring consistent treatment wherever nominees or bare trustees are involved.