Commentary on Sections Structure of Chapters Overview Section 684: Income charged
2621.This section sets out the amount charged to tax, which is the full amount of the annual payments (subsection (1)). It is based on sections 64 and 65(1) of ICTA.
2622.The words “without any deduction” in section 64 of ICTA are omitted. It is unnecessary to reproduce this phrase because one of the defining characteristics of an annual payment is that the recipient may make no deductions for expenses from it. See also the commentary on section 370 of this Act.
2623.Subsection (2) makes subsection (1) subject to the rules in Part 8 of this Act. Part 8 sets out the special rules which apply to foreign income including allowable deductions from foreign income and the remittance basis (see further the commentary on Part 8).
2624.Subsection (3) signposts the tax provision in ICTA which deals with the position of a person who receives income from a discretionary trust.