Commentary

A4.460 Exceptions from the duty to deduct

Administration and compliance

A4.460 Exceptions from the duty to deduct

Payments between companies etc

A4.460 Exceptions from the duty to deduct

Provided certain conditions are met, certain payments may be made without deduction of tax.

The rules are contained in ITA 2007, ss 929–938 (Pt 15, Ch 11). Payment may be made without deduction if, at the time the payment is made, the payer reasonably believes that the payment is an 'excepted payment'1. The payments must be made by a company or by a local authority2. The rule also applies to payments made by a partnership if one of the members is a company or local authority (a 'qualifying partnership')3. It does not apply to a payment made by a company acting as trustee or agent for another person4.

The payments to which the exception from the duty to deduct applies are5:

  1.  

    (a)     certain payments of yearly interest (see A4.421)

  2.  

    (b)     payments in respect of building society securities (see A4.429)

  3.  

    (c)

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial