Taxation (International and Other Provisions) Act 2010 section 369

Factoring of income etc

Section 369 introduces new anti-avoidance rules dealing with certain finance arrangements and loan or credit transactions, by inserting two new chapters into the Income Tax Act 2007.

• This section activates Schedule 5 of the Act, which creates two new sets of anti-avoidance provisions
• The new rules are inserted as Chapters 5B and 5C into Part 13 of the Income Tax Act 2007, which is the part dealing with anti-avoidance
• Chapter 5B addresses finance arrangements, such as income factoring, where a person effectively sells or assigns future income streams
• Chapter 5C deals with loan or credit transactions that may be used to convert income into capital or otherwise avoid tax