Income Tax (Trading and Other Income) Act 2005 section 616

Person liable

Section 616 identifies who is liable to pay tax on certain income charged under Chapter 4 of the Act.

• The section establishes a straightforward rule for determining who bears the tax liability on income taxed under this chapter.
• The person who actually receives the income is the one liable to pay the tax on it.
• Alternatively, if a person has not yet received the income but is entitled to it, that person is equally liable for the tax.
• There is no scope under this section for shifting the liability to any other party; it falls squarely on the recipient or the person with the entitlement.