Taxation (International and Other Provisions) Act 2010 section 44

Application of section 809CZC of ITA 2007 (income-transfer under loan or credit transaction)

Schedule 9 paragraph 44 modifies how the income-transfer rules under loan or credit transactions apply to transfers that took place before 22 April 2009.

• This paragraph is a transitional provision dealing with transfers of income that occurred before 22 April 2009.
• It modifies the wording of section 809CZC(4) of ITA 2007 for those earlier transfers, broadening the ways in which a person can deal with income rights.
• For pre-22 April 2009 transfers, the rule additionally covers situations where a person assigns income rights, not just where they otherwise deal with them.
• It also clarifies that for those earlier transfers, the income could be received without a sale or transfer of the underlying property itself.

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