Income Tax Act 2007 section 870

Other investments

Section 870 identifies certain investments with deposit-takers that are excluded from being treated as relevant investments for income tax deduction purposes.

• A loan made by a deposit-taker in the ordinary course of its business is not a relevant investment.
• A debt on a security listed on a recognised stock exchange is excluded from relevant investment treatment.
• A debt on a debenture issued by the deposit-taker itself is also excluded.
• The definition of "bank" for these purposes extends to building societies as well as banks.