Income Tax Act 2007 section 850

Overview of Chapter

Section 850 provides an overview of the Chapter dealing with deduction of income tax at source by deposit-takers and building societies, and how the key definitions and rules within the Chapter fit together.

• The Chapter supports section 876, which exempts deposit-takers from the general duty to deduct tax from payments of yearly interest
• Key definitions are provided for "deposit-taker", "investment", "deposit", and "relevant investment", with the Treasury having power to prescribe additional persons as deposit-takers
• Certain investments must be treated as relevant investments, while others (set out in sections 857 and 863 to 870) are specifically excluded from being relevant investments
• For all purposes of this Chapter, crediting interest to an account counts as paying it