Section 637 — Income Tax Act 2007: Accrued income losses treated as payments in next interest period

Accrued income losses treated as payments in next interest period 637 1 This section applies if—

a a person is treated as making accrued income losses in an interest period as a result of transfers of securities, and b the period does not end with an interest payment day.

2 For the purposes of this Chapter the person is treated as making a payment on a transfer of the securities in the next interest period equal to the amount of the losses.

3 For cases where the period does end with an interest payment day, see sections 678 to 680 (exemptions for interest on securities involving accrued income losses).