Income Tax Act 2007 section 885

Authorised persons dealing in financial instruments

Section 885 provides an exemption from the duty to deduct income tax at source on interest payments for persons authorised under the Financial Services and Markets Act 2000 whose business is principally dealing in financial instruments.

• Interest payments made by persons authorised under FISMA 2000 may be exempt from the usual duty to deduct income tax at source under section 874.
• The exemption applies only where the authorised person's business consists wholly or mainly of dealing in financial instruments as principal.
• The interest payment must be made in the ordinary course of that dealing business to qualify for the exemption.
• The term "financial instrument" is defined in section 984 of the Income Tax Act 2007.