Income Tax Act 2007 section 983

Meaning of "deposit"

Section 983 defines the term "deposit" as used throughout the chapter dealing with deductions of tax from interest on deposits held by deposit-takers and building societies.

• A deposit is a sum of money paid on terms requiring its repayment, with or without interest.
• Repayment may be on demand or at a time or in circumstances agreed between the payer and receiver.
• The definition applies uniformly to both deposit-takers and building societies, ensuring consistent treatment across both types of institution.
• This common definition also ensures that related concepts such as qualifying certificates of deposit and qualifying uncertificated eligible debt security units carry the same meaning for deposit-takers and building societies.