Income Tax Act 2007 section 615

Overview of Part

Section 615 introduces and outlines the scope of Part 12 of the Act, which deals with the accrued income scheme — the tax rules that apply when interest-bearing securities are transferred between parties.

• Part 12 covers accrued income profits and losses arising on transfers of interest-bearing securities, plus certain exemptions relating to interest on securities
• Accrued income profits are amounts treated as income (rather than capital) when securities carrying interest are transferred — without these rules, such profits would typically be capital in nature
• Accrued income losses arise in corresponding circumstances and are governed by section 628, while profits can arise under sections 628, 630 or 670 depending on the type of transfer
• Key terms — "securities", "transfer" and "interest" — are defined elsewhere in the Part, in sections 619, 620 and 671 respectively