Income Tax Act 2007 section 616

Charge to tax on accrued income profits

Section 616 establishes that income tax is charged on accrued income profits.

• Income tax is charged on accrued income profits arising from transfers of securities.
• The charge applies to income as it builds up or accrues, not just when it is received.
• This ensures that interest accrued on securities between interest payment dates is subject to tax.
• The provision derives from earlier legislation in sections 714, 716, and 723 of ICTA.