Income Tax Act 2007 section 589

Meaning of "gross amount": interest and manufactured overseas dividends

Section 589 defines "gross amount" for the purposes of the rules about deduction of tax from interest payments and manufactured overseas dividends.

• The "gross amount" is the amount used to calculate the correct tax deduction from interest and manufactured overseas dividend payments.
• For interest, the gross amount is the amount of the interest payment before any tax is deducted at source.
• For manufactured overseas dividends, the gross amount is similarly the pre-tax figure representing the full value of the payment.
• This definition applies throughout the Chapter dealing with deduction of tax from these types of payment.