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39 1997

TAXES CONSOLIDATION ACT, 1997

CHAPTER 2

Government and other public securities: interest payable without deduction of tax

Government securities.

[ITA67 s466; FA97 s146(1) and Sch9 PtI par1(31)]

36. —(1) The Minister for Finance may direct that any securities already issued or to be issued under that Minister's authority shall be deemed to have been, or shall be, issued subject to the condition that the interest on those securities shall be paid without deduction of tax

(2) The interest on all securities issued, or deemed to have been issued, subject to the condition referred to in subsection (1) shall be paid without deduction of tax, but all such interest shall be chargeable under Case III of Schedule D and, where any funds under the control of any court or public department are invested in any such securities, the person in whose name the securities are invested shall be the person so chargeable in respect of the interest on those securities.

(3) Where interest on any security is paid under this section without deduction of tax, every person by whom such interest is paid, every person who receives such interest on behalf of a registered or inscribed holder of the security, and every person who has acted as an intermediary in the purchase of the security, shall, on being so required by the Revenue Commissioners, furnish to them—

(a) the name and address of the person to whom such interest has been paid, or on whose behalf such interest has been received, and the amount of the interest so paid or received, or, as the case may require,

(b) the name and address of the person on whose behalf such security was purchased and the amount of such security.

Securities of certain State-owned companies.

[FA97 s144]

37. —(1) In this section, “securities” means any bonds, certificates of charge, debentures, debenture stock, notes, stock or other forms of security.

(2) The securities specified in the Table to this section shall be deemed to be securities issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

(3) Notwithstanding anything in the Tax Acts, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of a company (being a company referred to in the Table to this section) for any accounting period, the amount of the interest on any securities which, by direction of the Minister for Finance given under section 36 , as applied by subsection (2), is paid by the company without deduction of tax for such period shall be allowed as a deduction.

TABLE

Securities issued by ACC Bank plc.

Securities issued on or after the 13th day of July, 1954, by the Electricity Supply Board.

Securities issued on or after the 13th day of July, 1954, by Córas Iompair Éireann.

Securities issued on or after the 18th day of July, 1957, by Bord na Móna.

Securities issued on or after the 2nd day of July, 1964, by Aer Lingus, Teoranta.

Securities issued on or after the 2nd day of July, 1964, by Aer Rianta, Teoranta.

Securities issued on or after the 2nd day of July, 1964, by Aerlínte Éireann, Teoranta.

Securities issued on or after the 25th day of May, 1988, by Bord Telecom Éireann.

Securities issued on or after the 25th day of May, 1988, by Irish Telecommunications Investments plc.

Securities issued on or after the 24th day of May, 1989, by Radio Telefís Éireann.

Securities issued on or after the 24th day of May, 1989, by ICC Bank plc.

Securities issued on or after the 28th day of May, 1992, by Bord Gáis Éireann.

Certain State-guaranteed securities.

[FA70 s59(1), (2) and (3); FA97 s146(1) and Sch9 PtI par4(3)]

38. —(1) This section shall apply to any securities (other than securities specified in the Table to section 37 ) which are issued by a body corporate and in respect of which the payment of interest and the repayment of principal are guaranteed by a Minister of the Government under statutory authority.

(2) Any securities to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

(3) Notwithstanding anything in the Tax Acts, in computing for the purposes of assessment under Case I of Schedule D the amount of the profits or gains of a body corporate by which the securities to which this section applies are issued, for any period for which accounts are made up, the amount of the interest on such securities which, by direction of the Minister for Finance under section 36 , as applied by this section, is paid by the body corporate without deduction of tax for such period shall be allowed as a deduction.

Securities of certain European bodies.

[FA73 s92(1) and 2)(a); FA89 s98(1)]

39. —(1) This section shall apply to any stock or other form of security issued in the State by the European Community, the European Coal and Steel Community, the European Atomic Energy Community or the European Investment Bank.

(2) Any stock or other form of security to which this section applies shall be deemed to be a security issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

Securities of International Bank for Reconstruction and Development.

[FA94 s161(1) and (2)(a)]

40. —(1) This section shall apply to any stock or other form of security issued by the International Bank for Reconstruction and Development.

(2) Any stock or other form of security to which this section applies shall be deemed to be a security issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.

Securities of designated bodies under the Securitisation (Proceeds of Certain Mortgages) Act, 1995.

[FA96 s39(1) and (3)]

41. —Any stock or other form of security issued by a body designated under section 4(1) of the Securitisation (Proceeds of Certain Mortgages) Act, 1995, shall be deemed to be a security issued under the authority of the Minister for Finance under section 36 , and that section shall apply accordingly.