Income Tax Act 2007 section 618

Person liable

Section 618 identifies who is liable to pay income tax on accrued income profits arising under the accrued income scheme.

• The person treated as making the accrued income profits is the one liable for any tax charged under this chapter.
• Accrued income profits may arise from transfers where the person is the transferor, the transferee, or a combination of both.
• Where trustees are the liable person, special trust tax rates apply rather than the normal individual rates.
• In certain circumstances, nominees and trustees can be disregarded, with the underlying beneficial owner being treated as the liable person instead.