Public Securities

Table of Contents

TAXES CONSOLIDATION ACT

Income Tax and Corporation Tax: The Main Provisions (ss. 32-531)
Part 3

Provisions Relating to the Schedule C Charge and Government and Other Public Securities (ss. 32-51)

Chapter 1 Principal provisions relating to the Schedule C charge (ss. 32-35)
32.

Interpretation (Chapter 1).

In this Chapter –

“banker” includes a person acting as a banker;

“coupons” and “coupons for any foreign public revenue dividends” include warrants for or bills of exchange purporting to be drawn or made in payment of any foreign public revenue dividends;

“dividends”, except in the phrase “stock, dividends or interest”, means any interest, annuities, dividends or shares of annuities;

“foreign public revenue dividends” means dividends payable elsewhere than in the State (whether they are or are not also payable in the State) out of any public revenue other than the public revenue of the State;

“public revenue”, except where the context otherwise requires, includes the public revenue of any Government whatever and the revenue of any public authority or institution in any country outside the State;

“public revenue dividends” means dividends payable out of any public revenue.

33.

Method of charge and payment.

(1)Tax under Schedule C shall be paid on behalf of the persons entitled to the profits, dividends, proceeds of realisation or price paid on purchase which are the subject of the tax –

(a)in the case of tax charged under paragraph 1 of that Schedule, by the persons and bodies of persons respectively entrusted with payment;

(b)in the case of tax charged under paragraph 2, 3 or 4 of that Schedule, by the banker or other person, or by the banker or by the dealer in coupons, as the case may be.

(2)Schedule 2 shall apply in relation to the assessment, charge and payment of tax under Schedule C.

34. Stock, dividends or interest belonging to the State.
(1)No tax shall be chargeable in respect of the stock, dividends or interest transferred to accounts in the books of the Bank of Ireland in the name of the Minister for Finance in pursuance of any statute, but the Bank of Ireland shall transmit to the Revenue Commissioners an account of the total amount of such stock, dividends or interest.

(2)No tax shall be chargeable in respect of the stock, dividends or interest belonging to the State in whatever name they may stand in the books of the Bank of Ireland.

35.

Securities of foreign territories.

(1)

(a)No tax shall be chargeable in respect of the dividends on any securities of any territory outside the State which are payable in the State, where it is proved to the satisfaction of the Revenue Commissioners that the person owning the securities and entitled to the dividends is not resident in the State; but, except where provided by the Income Tax Acts, no allowance shall be given or repayment made in respect of the tax on the dividends on the securities of any such territory which are payable in the State.

(b)Where the securities of any territory outside the State are held under any trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call on the trustees at any time to transfer the securities to such person absolutely free from any trust, that person shall for the purposes of this section be deemed to be the person owning the securities.

(2)Relief under this section may be given by the Revenue Commissioners either by means of allowance or repayment on a claim being made to them for that purpose.

(3)A person aggrieved by a decision of the Revenue Commissioners on any question as to the residence of that person arising under this section may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 2 months after the date of the notice of the decision.

(4)[deleted]

Chapter 2 Government and other public securities: interest payable without deduction of tax (ss. 36-41)

36.

Government securities.

(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)Subject to section 817V, 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.

37.

Securities of certain State-owned companies.

(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, other than Part 35D, 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 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 Dublin Airport Authority.

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

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

Securities issued on or after the 23rd day of October 2014 by the company established pursuant to section 5 of the Gas Regulation Act 2013.

Securities issued on or after the 24th day of October 2013 by Irish Water.

38.

Certain State-guaranteed securities.

(1)This section applies to any securities 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; but does not apply to securities specified in the Table to section 37.

(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, other than Part 35D, 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.

39.

Securities of certain European bodies.

(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.

40.

Securities of International Bank for Reconstruction and Development.

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

41.

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

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.

Chapter 3 Government and other public securities: exemptions from tax (ss. 42-50)

42.

Exemption of interest on savings certificates.

(1)In this section –

‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;

‘EEA state’ means a state which is a contracting party to the EEA Agreement;

‘relevant State’ means –

(i)a Member State of the European Union, or

(ii)not being such a Member State, an EEA state which is a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made,

and, in addition to what is specified in paragraphs (a) and (b), shall be deemed to include the United Kingdom.

(2)The accumulated interest payable in respect of any savings certificate issued by the Minister for Finance, or savings certificates or other similar securities issued by the Government of a relevant State pursuant to rules and conditions which correspond to the rules and conditions contained in regulations issued by the Minister for Finance, under which the purchaser, by virtue of an immediate payment of a specified sum, becomes entitled after a specified period to receive a larger sum consisting of the specified sum originally paid and accumulated interest on that specified sum, shall not be liable to tax so long as the amount of such certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which that person is for the time being authorised to hold under regulations made by the Minister for Finance.

43.

Certain securities issued by Minister for Finance.

(1)Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that neither the capital of nor the interest on such security shall be liable to tax so long as it is shown in the manner to be prescribed by the Minister for Finance that such security is in the beneficial ownership of a person who is not, or persons who are not, resident in the State, and accordingly every security issued with such condition shall be exempt from tax.

(2)

(a)Notwithstanding subsection (1), where a security has been issued with the condition referred to in that subsection and the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without that condition, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I or, as respects interest and other profits or gains accruing on or after the 21st day of April, 1997, from the security, Case IV of Schedule D, or in accordance with section 726, then, such interest and profits or gains shall be charged to tax as if the security had been issued without such condition.

(b)Paragraph (a) shall apply as respects securities acquired by a company after the 29th day of January, 1992, whether they were issued before or after that date.

44.

Exemption from corporation tax of certain securities issued by Minister for Finance.

(1)In this section –

“control” shall be construed in accordance with subsections (2) to (6) of section 432, with the substitution in subsection (6) of that section for “5 or fewer participators” of “persons resident in a relevant territory”;

“foreign company” means a company which is –
(a)not resident in the State, and
(b)under the control of a person or persons resident in a relevant territory;

“qualifying company” means a company –
(a)
(i)which is resident in the State and not resident elsewhere
(ii)whose business consists wholly or mainly of –
(I)the carrying on of a relevant trade or relevant trades, or
(II)the holding of stocks, shares or securities of a company which exists wholly or mainly for the purpose of the carrying on of a relevant trade or relevant trades, and
(iii)of which not less than 90 per cent of its issued share capital is held by a foreign company or foreign companies, or by a person or persons directly or indirectly controlled by a foreign company or foreign companies, or
(b)which is a foreign company carrying on a relevant trade through a branch or agency in the State;

“relevant territory” means a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made;

“relevant trade” means a trade carried on wholly or mainly in the State, but does not include a trade consisting wholly or partly of –
(a)banking within the meaning of the Central Bank Act, 1971
(b)assurance business within the meaning of section 3 of the Insurance Act, 1936
(c)selling goods by retail, or
(d)dealing in securities
but goods shall be deemed for the purposes of this definition not to be sold by retail if they are sold to –
(i)a person who carries on a trade of selling goods of the class to which the goods so sold to such person belong
(ii)a person who uses goods of that class for the purposes of a trade carried on by such person, or
(iii)a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by such person.

(2)Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that any interest arising on such security shall not be liable to corporation tax so long as the security is held continuously from the date of issue in the beneficial ownership of a qualifying company to which the security was issued.

45.

Exemption of non-interest-bearing securities.

(1)The excess of the amount received on the redemption of a unit of non-interest-bearing securities issued by the Minister for Finance under section 4 of the Central Fund Act, 1965, over the amount paid for the unit on its issue shall, except where the excess is to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from tax.

(2)Subsection (1) shall not apply to issues of securities to which subsection (3) applies made after the 25th day of January, 1984, unless a tender for any such securities was submitted on or before that date.

(3)The securities to which this subsection applies are –

(a)non-interest-bearing securities issued by the Minister for Finance at a discount, including Exchequer Bills and Exchequer Notes, and

(b)Agricultural Commodities Intervention Bills issued by the Minister for Agriculture and Food.

(4)

(a)In this subsection, “owner”, in relation to securities, means at any time the person who would be entitled, if the securities were redeemed at that time by the issuer, to the proceeds of the redemption.

(b)Notwithstanding subsection (2), where the owner of a security to which subsection (3) applies –

(i)sells or otherwise disposes of the security, or

(ii)receives on redemption of the security an amount greater than the amount paid by such owner for that security either on its issue or otherwise,

then, any profit, gain or excess arising to the owner from such sale, disposal or receipt shall be exempt from tax where the owner is not resident in the State; but this subsection shall not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a company not resident in the State.

46.

Exemption of premiums on Investment Bonds.

The excess of the amount received on the redemption of a unit of securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965, and known as Investment Bonds, over the amount which was paid for the unit on its issue shall, except where the excess is to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from tax.

47.

Certain securities of ACC Bank plc.
Repealed from 28 February 2002
Debentures, debenture stock and certificates of charge issued by ACC Bank plc, shall not be liable to tax so long as it is shown in the manner to be prescribed by the Minister for Finance that they are in the beneficial ownership of persons neither domiciled nor ordinarily resident in the State.

48.

Exemption of premiums on certain securities.

(1)The securities to which this subsection applies are –

(a)securities created and issued by the Minister for Finance under the Central Fund (Permanent Provisions) Act, 1965, or under any other statutory powers conferred on that Minister, and any stock, debenture, debenture stock, certificate of charge or other security issued with the approval of the Minister for Finance given under any Act of the Oireachtas and in respect of which the payment of interest and repayment of capital is guaranteed by the Minister for Finance under that Act, but excluding securities to which section 4 of the Central Fund Act, 1965, or section 45(1) or 46 applies,

(b)securities (other than securities specified in the Table to section 37) issued by a body corporate and in respect of which the payment of interest and the repayment of principal is guaranteed by a Minister of the Government under statutory authority,

(c)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, and

(d)any stock or other form of security issued by the International Bank for Reconstruction and Development.

(2)The excess of the amount received on the redemption of a unit of securities to which subsection (1) applies over the amount paid for the unit on its issue shall, except where the excess is to be taken into account in computing for the purposes of taxation the profits of a trade, be exempt from tax.

(3)Subsection (2) shall not apply to issues of securities to which subsection (4) applies made after the 25th day of January, 1984, unless a tender for any such securities was submitted on or before that date.

(4)The securities to which this subsection applies are –

(a)non-interest-bearing securities issued by the Minister for Finance at a discount, including Exchequer Bills and Exchequer Notes,

(b)Agricultural Commodities Intervention Bills issued by the Minister for Agriculture and Food, and

(c)strips within the meaning of section 54(10) of the Finance Act, 1970 (inserted by section 161 of the Finance Act, 1997).

(5)

(b)Notwithstanding subsection (3), where the owner of a security to which subsection (4) applies –

(i)sells or otherwise disposes of the security, or

(ii)receives on redemption of the security an amount greater than the amount paid by the owner for that security either on its issue or otherwise,

any profit, gain or excess arising to the owner from such sale, disposal or receipt shall be exempt from tax where the owner is not resident in the State; but this subsection shall not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a company not resident in the State.

49.

Exemption of certain securities.

(1)This section shall apply to any stock or other security on which interest is payable without deduction of tax by virtue of a direction given by the Minister for Finance in pursuance of section 37, 38, 39, 40 or 41.

(2)Any stock or other security to which this section applies may be issued with a condition that neither the capital of nor the interest on the stock or other security shall be liable to tax so long as it is shown in the manner directed by the Minister for Finance that the stock or other security is in the beneficial ownership of persons who are not resident in the State, and accordingly as respects every such stock or other security issued, exemption from tax shall be granted.

(3)

(a)Notwithstanding subsection (2), where a security to which this section applies has been issued with either or both of the conditions referred to in that subsection and the security is held by or for a branch or agency through which a company carries on a trade or business in the State, which is such a trade or business, as the case may be, that, if the security had been issued without either of those conditions, interest on, or other profits or gains from, the security accruing to the company would be chargeable to corporation tax under Case I or, as respects interest and other profits or gains accruing on or after the 21st day of April, 1997, from the security, Case IV of Schedule D, or in accordance with section 726, then, such interest and profits or gains shall be charged to tax as if the security had been issued without either of those conditions.

(b)Paragraph (a) shall apply as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date.

50.

Securities of Irish local authorities issued abroad.

(1)In this section, “local authority” includes any public body recognised as a local authority for the purpose of this section by the Minister for the Environment and Local Government.

(2)Securities issued outside the State by a local authority in the State for the purpose of raising any money which the local authority is authorised to borrow, if issued under the authority of the Minister for Finance, shall not be liable to tax, except –

(a)where they are held by persons domiciled in the State or ordinarily resident in the State, or

(b)as respects securities acquired by a company after the 15th day of May, 1992, whether they were issued before or after that date, where they are held by or for a branch or agency through which a company carries on a trade or business in the State which is such a trade or business, as the case may be, that, if this section had not been enacted, interest on, or other profits or gains from, the securities accruing to the company would be chargeable to corporation tax under Case I or, as respects interest and other profits or gains accruing on or after the 21st day of April, 1997, from the securities. Case IV of Schedule D, or in accordance with section 726.

Chapter 4 Miscellaneous provisions (s. 51)
51.

Funding bonds issued in respect of interest on certain debts.

(1)In this section, “funding bonds” includes all bonds, stocks, shares, securities and certificates of indebtedness.

(2)This section shall apply to all debts owing by any government, public authority or public institution whatever or wherever and to all debts owing by any body corporate whatever or wherever.

(3)Where any funding bonds are issued to a creditor in respect of any liability to pay interest on a debt to which this section applies, the issue of those bonds shall be treated for the purposes of the Tax Acts as if it were the payment of an amount of the interest equal to the value of the bonds at the time of the issue of the bonds, and the redemption of the bonds shall not be treated for any of the purposes of the Tax Acts as payment of the interest or any part of the interest.

Schedule 2

Machinery for Assessment, Charge and Payment of Tax Under Schedule C and, In Certain Cases, Schedule D

Schedule 2,

Part 1 Interpretation of Parts 2 to 4 (paras. 1-1A)

Sections 33, 61 and 62.

1.Section 32 shall apply for the interpretation of Parts 2 to 4 of this Schedule as it applies for the interpretation of Chapter 1 of Part 3 of this Act, except that in Part 4 of this Schedule “dividends” shall include all such interest, annuities or payments as are, within the meaning of section 60, dividends to which Chapter 2 of Part 4 of this Act applies.

1A.In this Schedule-

“chargeable person” means any of the following:
(a)a person who is entrusted with the payment of any dividends which are payable to any persons in the State out of any public revenue;
(b)a person in the State who is entrusted with the payment of any dividends to which Chapter 2 of Part 4 applies;
(c)a banker or other person in the State who obtains payment of any dividends in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
(d)a banker in the State who sells or otherwise realises coupons in such manner that the proceeds of the sale or realisation are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
(e)a dealer in coupons in the State who purchases coupons in such manner that the price paid on the purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;

“specified dividend income” means –
(a)the amount of dividends which are payable to any person in the State out of any public revenue,
(b)the amount of dividends to which Chapter 2 of Part 4 applies,
(c)the amount of dividends received by a chargeable person in the State in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D,
(d)the proceeds of sale or realisation of coupons where those proceeds are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D, or
(e)the price paid on purchase of coupons where such price paid on purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;

Schedule 2, Part 2 Public revenue dividends, etc., payable to the Bank of Ireland, or entrusted for payment to the Bank of Ireland (paras. 2-10)
Deleted from 1 January 2013
Sections 33, 61 and 62.

2.The Bank of Ireland, as respects the dividends and the profits attached to the dividends payable to the Bank out of the public revenue of the State, or payable out of any public revenue and entrusted to the Bank for payment and distribution, shall, when any payment becomes due, deliver to the Commissioners appointed to assess and charge the income tax on such dividends and the profits attached to such dividends in books provided for the purpose true accounts of –

(a)the amounts of the dividends, and profits attached to the dividends, payable to the Bank,

(b)all dividends entrusted to the Bank for payment to the persons entitled to such dividends, and

(c)the amount of income tax chargeable on such dividends and the profits attached to such dividends at the standard rate in force at the time of payment without any other deduction than is allowed by the Income Tax Acts.

3.The accounts referred to in paragraph 2 shall distinguish the separate account of each person.

4.The Commissioners shall assess the income tax chargeable on the accounts delivered to the best of their judgment and belief, and shall deliver the assessment books signed by them to the Revenue Commissioners.

5.The Revenue Commissioners shall cause to be made out a certificate showing the total amount of income tax, the total amounts of the dividends and profits attached to the dividends charged with income tax, and the description of the persons or bodies of persons to whom such dividends and profits are payable or who have the distribution or are entrusted with the payment of such dividends.

6.The certificate shall be transmitted to the Commissioners whose duty it is to make the assessment.

(1)In the case of dividends and profits attached to dividends payable to the Bank of Ireland out of the public revenue of the State, the Bank of Ireland shall set apart the income tax in respect of the amount payable to the Bank.

(2)In the case of dividends and profits attached to dividends entrusted to the Bank of Ireland for payment and distribution –

(a)the Bank of Ireland shall before making any payment retain the amount of the income tax for the purposes of the Income Tax Acts,

(b)the retaining of the amount shall be deemed to be a payment of the income tax by the persons entitled to the dividends and shall be allowed by those persons on the receipt of the residue of the dividends, and

(c)the Bank of Ireland shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid.

8.Money set apart or retained under paragraph 7 shall be paid into the general account of the Revenue Commissioners at the Bank of Ireland, and every such payment shall be accompanied by a certificate, under the hands of 2 or more of the Commissioners who made the assessment, of the amount of the assessment under which the payment is made.

9.Where the Bank of Ireland does all such things as are necessary to enable the income tax to be assessed and paid in respect of British Government Stocks and India Stocks inscribed in its books in Dublin, the Bank shall receive as remuneration an allowance, to be calculated by reference to the amount of dividends paid in respect of such Stocks from which income tax is deducted, and to be fixed by the Minister for Finance.

10.Except where otherwise provided in any other enactments in force at the commencement of this Act, no assessment, charge or deduction of income tax under this Part of this Schedule shall be made where any half-yearly payment in respect of any dividends does not exceed €3.50, but such dividends shall be assessed and charged under Case III of Schedule D.

Schedule 2, Part 3 Public revenue dividends payable by public offices and departments (paras. 11-13)
Deleted from 1 January 2013
Sections 33, 61 and 62.

11.Public revenue dividends payable by any public office or Department of State shall be charged under Schedule C by the Revenue Commissioners.

12.The Revenue Commissioners shall exercise the like powers and duties as are possessed by Commissioners empowered to charge dividends payable out of the public revenue in other cases.

13.When any payments of dividends referred to in paragraph 11 are made, the income tax on those payments shall be computed and certified to the proper officer for payment, who shall retain the tax and pay the tax into the general account of the Revenue Commissioners at the Bank of Ireland.

Schedule 2, Part 4 Public revenue dividends, dividends to which Chapter 2 of Part 4 applies, proceeds of coupons and price paid on purchase of coupons (paras. 14-22)
Sections 33, 61 and 62.

14.

(1)Subject to Chapter 2 of Part 3 and subparagraph (3), every chargeable person shall, on making a payment of specified dividend income, deduct and retain a sum representing income tax at a rate of 25 per cent on that income and pay that income tax on behalf of the person entitled to that income.

(2)The payment of the income tax by the chargeable person shall be deemed to be a payment of the income tax by the persons entitled to the specified dividend income and shall be allowed by those persons on the receipt of the residue of the dividends.

(3)Subparagraph (1) shall not apply to a payment of specified dividend income to a company where that company –

(a)is beneficially entitled to that income, and

(b)is or will be within the charge to corporation tax in respect of that income.

15.

(1)Every chargeable person who makes a payment of specified dividend income shall make for each year of assessment within 46 days from the end of the year of assessment, a return to the Collector-General of that specified dividend income and of the income tax in relation to that specified dividend income.

(2)The income tax in relation to payments of specified dividend income which is required to be included in a return shall –

(a)be due at the time by which the return is to be made, and

(b)be paid by the chargeable person to the Collector-General,

and the income tax so due shall be payable by the chargeable person without the making of an assessment; but income tax which has become so due may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.

(3)A return due under this Schedule shall be in a form prescribed by the Revenue Commissioners and shall include the following:

(a)the name and address of the person to whom the payment of the specified dividend income is made;

(b)the amount and type of the payment referred to in clause (a);

(c)the amount of income tax deducted in respect of the payment referred to in clause (a) in accordance with paragraph 14(1);

(d)a declaration to the effect that the return is correct and complete.

16.

(1)Where it appears to the inspector that there is any amount of income tax in relation to a payment of specified dividend income which should have been but was not included in a return or where the inspector is dissatisfied with any return, the inspector may make an assessment on the chargeable person to the best of his or her judgement. Any amount of income tax in relation to a payment of specified dividend income due under an assessment made by virtue of this subparagraph shall be treated for the purpose of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.

(2)Any income tax assessed on a chargeable person under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under paragraph 15) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under paragraph 15.

(3)[deleted]

17.Where any item has been incorrectly included in a return as income tax, the inspector may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the chargeable person or any other person, are in so far as possible the same as they would have been if the item had not been so included.

18.

(1)A chargeable person shall keep records to distinguish the separate accounts of each of the persons entitled to receive specified dividend income and such records shall include –

(a)the name and address of the person entitled to receive specified dividend income,

(b)the amount and type of the specified dividend income payments paid to the person referred to in clause (a),

(c)the amounts of income tax deducted in respect of the payments referred to in clause (c) in accordance with paragraph 14(1), and

(d)in the case of amounts payable out of any public revenue to the person referred to in clause (a), particulars of the public revenue out of which each separate amount is payable.

(2)Records kept by a chargeable person in accordance with subparagraph (1) shall –

(a)be kept and retained by the chargeable person for a period of 6 years from the day on which the payment was made, and

(b)on being required by notice in writing given to the chargeable person by an inspector, be made available to the inspector within the time specified in the notice.

19.The provisions of section 898N shall apply with any necessary modifications as respects powers of an authorised officer as if a reference in that section to –

(a)books and records were a reference to books and records kept for the purposes of this Schedule,

(b)an authorised officer in that section were a reference to a Revenue officer as defined in section 898B, and

(c)a reference in that section to a paying agent were a reference to a chargeable person.

20.The provisions of the Income Tax Acts relating to –

(a)assessments to income tax, and

(b)the collection and recovery of income tax,

shall, in so far as they are applicable, apply to the assessment, collection and recovery of income tax due under this Schedule.

20A.

(1)Subject to subparagraph (2), a chargeable person aggrieved by an assessment made on that person under this Schedule may appeal the assessment to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of assessment.

(2)Where, in accordance with this Schedule, a chargeable person is required to make a return and account for income tax to the Collector-General, no appeal lies against an assessment until such time as the chargeable person makes the return and pays or has paid the amount of the income tax payable on the basis of that return.

21.

(1)Any amount of income tax payable in accordance with this Schedule shall, without the making of an assessment, carry interest from the date when the amount becomes due and payable until payment for any day or part of a day during which the amount remains unpaid, at a rate of 0.0274 per cent.

(2)Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under subparagraph (1) as they apply in relation to interest payable under section 1080.

(3)In its application to any income tax charged by any assessment made in accordance with this Schedule, section 1080 shall apply as if subsection (2)(b) of that section were deleted.

22.Where –

(a)income tax in respect of the proceeds of the sale or realisation of any coupon or in respect of the price paid on the purchase of any coupon has been accounted for under this Part by any banker or any dealer in coupons, and

(b)the Revenue Commissioners are satisfied that the dividends payable on the coupons in relation to which such proceeds or such price arises have been subsequently paid in such manner that income tax has been deducted from such dividends under any of the provisions of this Schedule,

then the income tax so deducted shall be repaid.

Schedule 2, Part 5 Relief from obligation to pay tax on certain interest, dividends and other annual payments in the case of persons entrusted with payment (paras. 23-28)
Sections 33, 61 and 62.

23.When any interest, dividends or other annual payments payable out of any public revenue other than that of the State, or in respect of the stocks, funds, shares or securities of any body of persons not resident in the State, are entrusted to any person in the State for payment to any person in the State, the Revenue Commissioners shall have power to relieve the person so entrusted with payment from the obligation to pay the income tax on such interest, dividends or other annual payments imposed on such person by section 17 and Chapter 1 of Part 3, or Chapter 2 of Part 4 and this Schedule.

24.When granting the relief referred to in paragraph 23 the Revenue Commissioners shall have power to prescribe any conditions which may appear to them to be necessary to ensure the assessment and payment of any income tax assessable and payable in respect of such interest, dividends or other annual payments under the Income Tax Acts.

25.A letter signed by a Secretary or an Assistant Secretary of the Revenue Commissioners stating that the Revenue Commissioners have exercised all or any of the powers conferred by this Part on them or the publication of a notice to that effect in Iris Oifigiúil shall be sufficient evidence that they have done so.

26.When, under the powers conferred on the Revenue Commissioners by this Part, the person entrusted with the payment of the interest, dividends or other annual payments is relieved from payment of the income tax on such interest, dividends or other annual payments, that tax shall be assessable and chargeable under the appropriate case of Schedule D on the person entitled to receive such interest, dividends or other annual payments and shall be payable by that person.

27.[deleted]

28.Notwithstanding paragraph 23, when any interest, dividends or other annual payments payable out of any public revenue other than that of the State, or in respect of the stocks, funds, shares or securities of any body of persons not resident in the State, are entrusted to any person in the State for payment to an investment undertaking within the meaning of section 739B and the person so entrusted would, apart from this paragraph, have an obligation imposed by section 17 and Chapter 1 of Part 3, or Chapter 2 of Part 4 and this Schedule, to pay the income tax on such interest, dividends or other annual payments, that obligation shall not apply.