Income Tax Act 2007 section 809EZE

Interpretation of Chapter

Section 809EZE defines the key terms and concepts used throughout this Chapter on the taxation of investment fund managers' disguised fees and carried interest.

• The section defines essential terms including "arrangements", "external investor", "investment management services", and "profits", giving each a broad meaning to prevent avoidance through narrow interpretation.
• An investment in a scheme means an actual contribution (whether capital, loan or otherwise) towards the scheme's property — amounts committed but not yet invested do not count.
• Where a person acquires a share in a scheme from a third party rather than from the scheme itself, their investment is treated as the lower of the price paid and the market value at the time of acquisition.
• Repayments and returns on investments in schemes structured as companies limited by shares include share buybacks, redemptions, winding-up distributions, dividends, and similar payments.