Income Tax Act 2007 section 975A

Statements about certain payments of interest

Section 975A requires anyone who pays interest in a non-cash form — such as goods, services, vouchers, or funding bonds — to provide the recipient with a written statement detailing the gross amount, any tax deducted, the net amount, and the date of payment.

• When interest is paid in goods, services, or vouchers, the payer must give the recipient a written statement showing the gross amount, any income tax deducted at source, the actual amount paid, and the payment date
• When interest is treated as paid through the issue of funding bonds (and the issuer is required to retain bonds to cover income tax), the payer must similarly provide a statement showing the deemed interest, the tax represented by the retained bonds, the net deemed interest, and the deemed payment date
• Unlike statements for cash interest payments under section 975, statements under section 975A must always be provided — the recipient does not need to request one
• The statement must be provided in writing on the date the payment is made (or the date the deemed interest is treated as paid), and the recipient has the right to enforce compliance