Income Tax Act 2007 section 564O

Relief for some alternative finance return under Chapter 1 of Part 8 etc.

Section 564O ensures that alternative finance return arising from purchase and resale arrangements qualifies for the same tax relief as conventional interest payments under the Income Tax Act 2007.

• Purchase and resale arrangements are treated as if they were conventional loans for the purposes of the interest payment relief rules.
• Alternative finance return generated from these arrangements is treated as if it were interest.
• This allows individuals using Sharia-compliant or other alternative finance products to claim the same relief as those paying conventional interest.
• The information requirements that apply to conventional interest relief claims also apply to these alternative finance arrangements.