Income Tax Act 2007 section 855

Meaning of "investment" and "deposit"

Section 855 defines the terms "investment" and "deposit" as used in the chapter dealing with relevant investments and the deduction of tax from deposit interest.

• An "investment" means a deposit placed with a deposit-taker (such as a bank or building society).
• A "deposit" is a sum of money paid on terms requiring repayment, whether or not interest is payable on it.
• Repayment of a deposit may be on demand, or at a time or in circumstances agreed between the depositor and the deposit-taker.
• Alternative finance arrangements are also treated as deposits for these purposes, ensuring consistent treatment across different types of financial institution.