Income Tax Act 2007 section 967

Calculation of sums representing income tax

Section 967 sets out how to calculate the sums representing income tax that must be deducted or accounted for under section 966, and caps those sums at a proportion equal to the basic rate of income tax.

• Sums representing income tax under section 966 must be calculated in accordance with prescribed rules
• The amount deducted or accounted for cannot exceed the basic rate of income tax applied to the payment or the value of what is transferred
• The Treasury may make regulations specifying how the value of a non-cash transfer under section 966 is to be calculated
• Regulations may treat the actual value as a net amount, gross it up at the basic rate, and take the grossed-up figure as the value of the transfer