Income Tax Act 2007 section 854

Power to prescribe persons as deposit-takers

Section 854 gives the Treasury the power to designate, by order, specific persons or classes of persons who receive deposits in the course of business as deposit-takers for tax purposes.

• The Treasury may prescribe individual persons or entire classes of persons who receive deposits in the course of carrying on business or activities as deposit-takers
• Prescription can apply broadly to all deposits that are relevant investments, or can be limited to deposits of a specific kind defined in the order
• Where a person is prescribed only in relation to a specific kind of deposit, the obligation to deduct income tax under section 876 applies only to that specified kind of relevant investment
• Earlier statutory instruments prescribing bodies such as British Railways Board and various local authorities as deposit-takers have been revoked as spent or obsolete