{"id":11161,"date":"2022-04-19T19:14:38","date_gmt":"2022-04-19T19:14:38","guid":{"rendered":"http:\/\/legalblog.ie\/?p=11161"},"modified":"2024-04-07T08:05:00","modified_gmt":"2024-04-07T08:05:00","slug":"investment-income","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/investment-income\/","title":{"rendered":"Investment Income"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/investment-income\/#Investment_Income_Treatment\" title=\"Investment Income Treatment\">Investment Income Treatment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/investment-income\/#Encashment_Tax\" title=\"Encashment Tax\">Encashment Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/investment-income\/#DIRT\" title=\"DIRT\">DIRT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/investment-income\/#DIRT_Exemption\" title=\"DIRT Exemption\">DIRT Exemption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/investment-income\/#DIRT_Rates\" title=\"DIRT Rates\">DIRT Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/investment-income\/#House_Purchase_DIRT\" title=\"House Purchase &amp; DIRT\">House Purchase &amp; DIRT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/investment-income\/#Special_Savings_Income\" title=\"Special Savings Income\">Special Savings Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/investment-income\/#Investment_Funds\" title=\"Investment Funds\">Investment Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/investment-income\/#Material_Interest_in_Offshore_Funds\" title=\"Material Interest in Offshore Funds\">Material Interest in Offshore Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/investment-income\/#Exemption\" title=\"Exemption\">Exemption<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/investment-income\/#Investment_Issues\" title=\"Investment Issues\">Investment Issues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/investment-income\/#2017_Amendments\" title=\"2017 Amendments\">2017 Amendments<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/legalblog.ie\/investment-income\/#Dividends\" title=\"Dividends\">Dividends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/legalblog.ie\/investment-income\/#Deemed_Dividends\" title=\"Deemed Dividends\">Deemed Dividends<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#TAXES_CONSOLIDATION_ACT\" title=\"TAXES CONSOLIDATION ACT\">TAXES CONSOLIDATION ACT<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interest_payments_by_certain_deposit_takers_ss_256-267\" title=\"Interest payments by certain deposit takers (ss. 256-267)\">Interest payments by certain deposit takers (ss. 256-267)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Deduction_of_tax_from_relevant_interest\" title=\"Deduction of tax from relevant interest.\">Deduction of tax from relevant interest.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Returns_and_collection_of_appropriate_tax\" title=\"Returns and collection of appropriate tax.\">Returns and collection of appropriate tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Alternative_amount_on_account_of_appropriate_tax\" title=\"Alternative amount on account of appropriate tax.\">Alternative amount on account of appropriate tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Provisions_supplemental_to_sections_258_and_259\" title=\"Provisions supplemental to sections 258 and 259.\">Provisions supplemental to sections 258 and 259.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Taxation_of_relevant_interest_etc\" title=\"Taxation of relevant interest, etc.\">Taxation of relevant interest, etc.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Taxation_of_interest_on_special_term_accounts\" title=\"Taxation of interest on special term accounts.\">Taxation of interest on special term accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Taxation_of_specified_interest\" title=\"Taxation of specified interest.\">Taxation of specified interest.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Statement_furnished_by_relevant_deposit_taker\" title=\"Statement furnished by relevant deposit taker.\">Statement furnished by relevant deposit taker.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declarations_relating_to_deposits_of_non-residents\" title=\"Declarations relating to deposits of non-residents.\">Declarations relating to deposits of non-residents.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declarations_to_a_relevant_deposit_taker_relating_to_deposits_of_certain_persons\" title=\"Declarations to a relevant deposit taker relating to deposits of certain persons.\">Declarations to a relevant deposit taker relating to deposits of certain persons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declarations_to_the_Revenue_Commissioners_relating_to_deposits_of_certain_persons\" title=\"Declarations to the Revenue Commissioners relating to deposits of certain persons.\">Declarations to the Revenue Commissioners relating to deposits of certain persons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Notifications_by_the_Revenue_Commissioners_relating_to_deposits_of_certain_persons\" title=\"Notifications by the Revenue Commissioners relating to deposits of certain persons.\">Notifications by the Revenue Commissioners relating to deposits of certain persons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declarations_to_the_Revenue_Commissioners_in_relation_to_relevant_amounts\" title=\"Declarations to the Revenue Commissioners in relation to relevant amounts.\">Declarations to the Revenue Commissioners in relation to relevant amounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Notification_by_the_Revenue_Commissioners_relating_to_deposits_of_relevant_amounts\" title=\"Notification by the Revenue Commissioners relating to deposits of relevant amounts.\">Notification by the Revenue Commissioners relating to deposits of relevant amounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declarations_relating_to_deposits_made_by_a_PEPP_provider_held_for_a_PEPP\" title=\"Declarations relating to deposits made by a PEPP provider held for a PEPP.\">Declarations relating to deposits made by a PEPP provider held for a PEPP.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Conditions_and_declarations_relating_to_special_savings_accounts\" title=\"Conditions and declarations relating to special savings accounts.\">Conditions and declarations relating to special savings accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Conditions_and_declarations_relating_to_special_term_accounts\" title=\"Conditions and declarations relating to special term accounts.\">Conditions and declarations relating to special term accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Returns_of_special_term_accounts_by_relevant_deposit_takers\" title=\"Returns of special term accounts by relevant deposit takers.\">Returns of special term accounts by relevant deposit takers.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Deposits_of_companies_and_pensions_schemes\" title=\"Deposits of companies and pensions schemes.\">Deposits of companies and pensions schemes.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Deposits_of_certain_persons\" title=\"Deposits of certain persons.\">Deposits of certain persons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Deposits_of_charities\" title=\"Deposits of charities.\">Deposits of charities.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Repayments_of_appropriate_tax_to_first-time_purchasers\" title=\"Repayments of appropriate tax to first-time purchasers.\">Repayments of appropriate tax to first-time purchasers.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Repayment_of_appropriate_tax_in_certain_cases\" title=\"Repayment of appropriate tax in certain cases.\">Repayment of appropriate tax in certain cases.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Dividend_Payments_by_Credit_Unions_ss_267A-267F\" title=\"Dividend Payments by Credit Unions (ss. 267A-267F)\">Dividend Payments by Credit Unions (ss. 267A-267F)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Taxation_of_dividends_on_regular_share_accounts\" title=\"Taxation of dividends on regular share accounts.\">Taxation of dividends on regular share accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Election_to_open_a_special_share_account_or_a_special_term_share_account\" title=\"Election to open a special share account or a special term share account.\">Election to open a special share account or a special term share account.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Taxation_of_dividends_on_special_term_share_accounts\" title=\"Taxation of dividends on special term share accounts.\">Taxation of dividends on special term share accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Conditions_and_declarations_relating_to_special_term_share_accounts\" title=\"Conditions and declarations relating to special term share accounts.\">Conditions and declarations relating to special term share accounts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Returns_of_special_term_share_accounts_by_credit_unions\" title=\"Returns of special term share accounts by credit unions.\">Returns of special term share accounts by credit unions.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Supplementary_provisions_Chapter_5\" title=\"Supplementary provisions (Chapter 5).\">Supplementary provisions (Chapter 5).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Royalty_payments_made_between_associated_companies_of_different_Member_States_ss_267G-267L\" title=\"Royalty payments made between associated companies of different Member States (ss. 267G-267L)\">Royalty payments made between associated companies of different Member States (ss. 267G-267L)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interpretation_Chapter_6\" title=\"Interpretation (Chapter 6).\">Interpretation (Chapter 6).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Application_Chapter_6\" title=\"Application (Chapter 6).\">Application (Chapter 6).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Exemptions_from_tax_and_withholding_tax\" title=\"Exemptions from tax and withholding tax.\">Exemptions from tax and withholding tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-51\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Credit_for_foreign_tax\" title=\"Credit for foreign tax.\">Credit for foreign tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-52\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Miscellaneous\" title=\"Miscellaneous.\">Miscellaneous.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-53\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Application_of_this_Chapter_to_certain_payments_made_to_companies_in_Switzerland\" title=\"Application of this Chapter to certain payments made to companies in Switzerland.\">Application of this Chapter to certain payments made to companies in Switzerland.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-54\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Certain_interest_from_sources_outside_the_State_s_267M\" title=\"Certain interest from sources outside the State (s. 267M)\">Certain interest from sources outside the State (s. 267M)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-55\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Tax_rate_applicable_to_certain_deposit_interest_received_by_individuals\" title=\"Tax rate applicable to certain deposit interest received by individuals.\">Tax rate applicable to certain deposit interest received by individuals.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-56\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Specified_Financial_Transactions_ss_267N-267V\" title=\"Specified Financial Transactions (ss. 267N-267V)\">Specified Financial Transactions (ss. 267N-267V)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-57\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interpretation_s_267N\" title=\"Interpretation (s. 267N)\">Interpretation (s. 267N)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-58\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Treatment_of_credit_transaction\" title=\"Treatment of credit transaction.\">Treatment of credit transaction.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-59\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Deposit_Return_s_267Q\" title=\"Deposit Return (s. 267Q)\">Deposit Return (s. 267Q)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-60\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Treatment_of_deposit_return\" title=\"Treatment of deposit return.\">Treatment of deposit return.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-61\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Reporting\" title=\"Reporting.\">Reporting.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-62\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Application_ss_267U-267V\" title=\"Application (ss. 267U-267V)\">Application (ss. 267U-267V)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-63\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Transactions_to_avoid_tax\" title=\"Transactions to avoid tax.\">Transactions to avoid tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-64\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Purchase_and_Sale_of_Securities_ss_748-753F\" title=\"Purchase and Sale of Securities (ss. 748-753F)\">Purchase and Sale of Securities (ss. 748-753F)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-65\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interpretation_and_application_Chapter_1\" title=\"Interpretation and application (Chapter 1).\">Interpretation and application (Chapter 1).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-66\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Dealers_in_securities\" title=\"Dealers in securities.\">Dealers in securities.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-67\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Persons_entitled_to_exemption\" title=\"Persons entitled to exemption.\">Persons entitled to exemption.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-68\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Traders_other_than_dealers_in_securities\" title=\"Traders other than dealers in securities.\">Traders other than dealers in securities.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-69\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Exchange_of_shares_held_as_trading_stock\" title=\"Exchange of shares held as trading stock.\">Exchange of shares held as trading stock.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-70\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Exchange_of_Irish_Government_bonds\" title=\"Exchange of Irish Government bonds.\">Exchange of Irish Government bonds.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-71\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Purchases_of_shares_by_financial_concerns_and_persons_exempted_from_tax_and_restriction_on_relief_for_losses_by_repayment_of_tax_in_case_of_dividends_paid_out_of_accumulated_profits_ss_752-753\" title=\"Purchases of shares by financial concerns and persons exempted from tax, and restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits (ss. 752-753)\">Purchases of shares by financial concerns and persons exempted from tax, and restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits (ss. 752-753)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-72\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Purchases_of_shares_by_financial_concerns_and_persons_exempted_from_tax\" title=\"Purchases of shares by financial concerns and persons exempted from tax.\">Purchases of shares by financial concerns and persons exempted from tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-73\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Restriction_on_relief_for_losses_by_repayment_of_tax_in_case_of_dividends_paid_out_of_accumulated_profits\" title=\"Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits.\">Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-74\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Stock_borrowing_and_repurchase_agreements_ss_753A-753F\" title=\"Stock borrowing and repurchase agreements (ss. 753A-753F)\">Stock borrowing and repurchase agreements (ss. 753A-753F)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-75\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interpretation_Chapter_3\" title=\"Interpretation (Chapter 3).\">Interpretation (Chapter 3).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-76\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Application\" title=\"Application.\">Application.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-77\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Payment_and_receipt_of_dividends_or_interest_and_manufactured_payments_under_a_stock_borrowing_or_repurchase_agreement\" title=\"Payment and receipt of dividends or interest and manufactured payments under a stock borrowing or repurchase agreement.\">Payment and receipt of dividends or interest and manufactured payments under a stock borrowing or repurchase agreement.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-78\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Refund_of_dividend_withholding_tax\" title=\"Refund of dividend withholding tax.\">Refund of dividend withholding tax.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-79\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Anti-avoidance\" title=\"Anti-avoidance.\">Anti-avoidance.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-80\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Records\" title=\"Records.\">Records.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-81\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Special_savings_incentive_accounts_ss_848B-848U\" title=\"Special savings incentive accounts (ss. 848B-848U)\">Special savings incentive accounts (ss. 848B-848U)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-82\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interpretation\" title=\"Interpretation.\">Interpretation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-83\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Special_savings_incentive_account\" title=\"Special savings incentive account.\">Special savings incentive account.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-84\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Tax_credits\" title=\"Tax credits.\">Tax credits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-85\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Payment_of_tax_credit\" title=\"Payment of tax credit.\">Payment of tax credit.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-86\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declaration_on_commencement\" title=\"Declaration on commencement.\">Declaration on commencement.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-87\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Acquisition_of_qualifying_assets\" title=\"Acquisition of qualifying assets.\">Acquisition of qualifying assets.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-88\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Termination_of_special_savings_incentive_account\" title=\"Termination of special savings incentive account.\">Termination of special savings incentive account.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-89\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declaration_on_maturity\" title=\"Declaration on maturity.\">Declaration on maturity.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-90\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Gain_on_maturity\" title=\"Gain on maturity.\">Gain on maturity.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-91\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Gain_on_cessation\" title=\"Gain on cessation.\">Gain on cessation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-92\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Gain_on_withdrawal\" title=\"Gain on withdrawal.\">Gain on withdrawal.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-93\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Taxation_of_gains\" title=\"Taxation of gains.\">Taxation of gains.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-94\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Transfer_of_special_savings_incentive_account\" title=\"Transfer of special savings incentive account.\">Transfer of special savings incentive account.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-95\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declaration_on_transfer\" title=\"Declaration on transfer.\">Declaration on transfer.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-96\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Monthly_returns\" title=\"Monthly returns.\">Monthly returns.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-97\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Other_returns\" title=\"Other returns.\">Other returns.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-98\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Registration_etc\" title=\"Registration etc.\">Registration etc.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-99\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Regulations\" title=\"Regulations.\">Regulations.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-100\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Offences\" title=\"Offences.\">Offences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-101\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Disclosure_of_information\" title=\"Disclosure of information.\">Disclosure of information.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-102\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Pensions_incentive_tax_credits_ss_848V-848AG\" title=\"Pensions: incentive tax credits (ss. 848V-848AG)\">Pensions: incentive tax credits (ss. 848V-848AG)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-103\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Interpretation_Part_36B\" title=\"Interpretation (Part 36B).\">Interpretation (Part 36B).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-104\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Transfer_of_funds_on_maturity_of_SSIA\" title=\"Transfer of funds on maturity of SSIA.\">Transfer of funds on maturity of SSIA.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-105\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Declaration\" title=\"Declaration.\">Declaration.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-106\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Entitlement_to_pension_tax_credit\" title=\"Entitlement to pension tax credit.\">Entitlement to pension tax credit.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-107\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Tax_credits-2\" title=\"Tax credits.\">Tax credits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-108\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Payment_of_tax_credits\" title=\"Payment of tax credits.\">Payment of tax credits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-109\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Monthly_return\" title=\"Monthly return.\">Monthly return.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-110\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Withdrawal_of_tax_credits\" title=\"Withdrawal of tax credits.\">Withdrawal of tax credits.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-111\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Other_returns-2\" title=\"Other returns.\">Other returns.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-112\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Registration_and_audit_of_administrators\" title=\"Registration and audit of administrators.\">Registration and audit of administrators.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-113\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Regulations_Part_36B\" title=\"Regulations (Part 36B).\">Regulations (Part 36B).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-114\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Offences_Part_36B\" title=\"Offences (Part 36B).\">Offences (Part 36B).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-115\" href=\"https:\/\/legalblog.ie\/investment-income\/2\/#Special_portfolio_investment_accounts\" title=\"Special portfolio investment accounts.\">Special portfolio investment accounts.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Investment_Income_Treatment\"><\/span>Investment Income Treatment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Investment income is categorised differently from trade income. Investment income must be removed from the accounts when computing trading income. As with other categories of income, there are special rules regarding the computation of tax on investment income.<\/p>\n<p>Generally, there are very limited write-offs and deductions against gross income. In many cases, tax is withheld at the source.<\/p>\n<p>Losses from investment income (e.g. rental income) \u00a0cannot be used to the same extent as trading losses. Generally, losses will not arise in relation to investment income.<\/p>\n<p>Losses on the sale of investments are subject to capital gains tax rules. They may be available against capital gains but not against investment income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Encashment_Tax\"><\/span>Encashment Tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Encashment tax is a withholding tax that applies to Irish public revenue and foreign dividends.\u00a0 The collecting agents pay the Revenue at a specified rate.\u00a0 This is credited to individuals when they make their own tax return.<\/p>\n<p>Collecting agents are obliged to make returns, keep records and allow inspections.\u00a0 Various provisions and procedures in the Taxes Act are applied to the collection agents.<\/p>\n<p>The tax collected is paid to the Collector-General. Encashment tax is not a final tax. Therefore recipients of income from which encashment tax has been deducted are required to return details of the relevant income on their annual returns of income and to pay any further tax due at their marginal rate where appropriate.<\/p>\n<p>FA 2012 makes amendments<\/p>\n<ul>\n<li>to require the paying\/collecting agents to submit a return along with the tax deducted without the necessity of having to be requested to do so;<\/li>\n<li>to enable the inspector of taxes to make assessments in the absence of such a return;<\/li>\n<li>to require the paying\/collecting agent to keep records of all dividend payments and to produce same when requested in writing by the inspector;<\/li>\n<li>to allow the inspector to make adjustments to a paying\/collecting agents liability where any amount has been incorrectly included in a return<\/li>\n<li>to apply the provisions of the Income Tax Acts relating to the assessment, collection and recovery of income tax to assessments, collection and recovery of encashment tax;<\/li>\n<li>to charge interest on unpaid encashment tax at the same rates as other unpaid taxes, and<\/li>\n<li>to delete the provision enabling remuneration of the paying\/collecting agents<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"DIRT\"><\/span>DIRT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Deposit income from licensed banks, building societies and the Post Office is subject to so-called deposit interest retention tax (DIRT). DIRT provides for a tax deduction of 25% from interest income and pays it to the Revenue.<\/p>\n<p>This payment satisfies the person&#8217;s tax liability in full. If the person in receipt of interest pays higher rate tax, he does not have to pay the higher rate in interest income subject to DIRT (unlike the position which once applied). The interest income may be subject to levies, which are not satisfied by DIRT.<\/p>\n<p>DIRT operates to charge both persons with income levels subject to higher tax rates and persons below the taxable income level at the standard rate. This is considered administratively simpler.\u00a0 Unlike the position with most other withholding taxes, there is very limited provision for a refund, and the taxpayer has no liability to tax.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DIRT_Exemption\"><\/span>DIRT Exemption<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Some limited categories of people are exempt or entitled to a refund of DIRT. Non- residents are exempt. A declaration must be made. Famously, a large amount of bogus non-resident declarations were made in the past.<\/p>\n<p>A person who is over 65 or whose spouse is over 65 is entitled to a refund if his \u00a0income is less than the income exemption limit and he makes the required declaration. There is a similar exemption available to a person whose spouse is permanently incapacitated by mental or physical infirmity.<\/p>\n<p>Income from EU financial institutions tax is subject to tax at the standard rate only. This is not deducted (unless deducted under the law of the country concerned).<\/p>\n<p>Credit unions interest may be subject to DIRT. However members have a number of options which are exempt from DIRT. There are options in relation to the way special share accounts are taxed. The may avail of the option for medium and long-term share accounts, equivalent to those mentioned below.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DIRT_Rates\"><\/span>DIRT Rates<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The rate of DIRT was increased by a further 2% to 30% in FA 2011. The rate of interest on deposit interest retention tax (DIRT) has increased to 33 percent and in case of interest not paid annually 36 percent.<\/p>\n<p>An individual who does not comply with his tax payment obligations may not avail of the 33 percent rate and accordingly must pay 41 percent marginal rate.\u00a0 The\u00a0 33 percent rate applies to individuals accounting for interest received from deposits accounts with financial institutions in other states.<\/p>\n<p>Where the standard rate taxpayer receives interest from a non-EU bank and tax is paid by the filing date, a 33 percent rate will apply.\u00a0 In the case of marginal rate taxpayer, 41 percent rate applies.<\/p>\n<p>FA 2012 increases the DIRT tax rate to 30 percent. A 30 percent rate also applies as the final tax on\u00a0 interest paid by foreign financial institutions provided that the tax is paid in full by the due date for filing the tax return.<\/p>\n<p>FA\u00a0 2012.inreased deposit interest retention tax (DIRT) to 30 percent.\u00a0 The same rate applies to tax applicable on dividends on special share accounts by credit unions.\u00a0 Special term share accounts are also taxed at 30 percent.<\/p>\n<p>FA 2012 provides that deposit interest from non-EU countries will be taxed at 30 per cent where the recipient is a standard rate taxpayer and makes a timely return of the income and at 41 per cent where the recipient is a higher rate taxpayer or has not made a timely return of the income. This does not apply to non-residents.<\/p>\n<p>Finance (No.2) Act 2013 provides that the Deposit interest rate tax is increased to 41% effective 1 January 2014.\u00a0 The former higher rate applicable to interest paid other than annually or where interest could not be determined until maturity is abolished in consequence. Dividends paid or credited to regular share accounts or credit unions within deposit interest retention tax regime are subject to the regime.<\/p>\n<p>Finance Act 2016 provided for a successive reduction in the rate of DIRT from 41 percent to 33 percent by 2020. It is to reduce by 2 percent each year. This applies to deposits in Irish and other EU financial Institutions. In the case of non-EU deposits, a 40 percent rate is to apply to income, if the person fails to file his tax return in time. In the case of standard rate payers, the reduced rates apply for non-EU deposits. In the case of high rate tax payers interest is taxed at the higher rate.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"House_Purchase_DIRT\"><\/span>House Purchase &amp; DIRT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Finance Act 2014 provides that where DIRT which has been deducted from relevant savings interest paid to first-time purchasers, it may be repaid on foot of a claim.\u00a0 It applies in respect of deposits held by a purchaser either individually or jointly with another first time purchaser\u00a0 up to 20% of the amount of the consideration paid.<\/p>\n<p>The property must be purchased between October 2014 and the end of 2017 in the name of the purchasers and used as their place of residence.\u00a0 The relief repays DIRT on savings. The provision operates by repayment of the DIRT deducted.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Special_Savings_Income\"><\/span>Special Savings Income<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are a number of special savings accounts which receive more favourable tax treatment, which are designed to incentivise saving. A medium-term account has a\u00a0 three year duration, and a long term account has a five year duration. An individual may hold one such account. Married persons may hold two jointly.<\/p>\n<p>Maximum monthly contributions are \u20ac635 or a once off investment or deposit of \u20ac7,620. Withdrawals may not be made within the three or five-year period A single withdrawal may be made on attaining 60 years or death. The interest guarantee may not exceed 12 months. Tax applies on a medium-term account where contributions exceeds \u20ac480. \u20ac480 is exempt. The corresponding sum for a long-term account is \u20ac635.<\/p>\n<p>The rate of tax on life assurance funds and unit investment funds was increased by 2% by FA Act 2011.\u00a0 This applies both to gains and to the exit tax.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Investment_Funds\"><\/span>Investment Funds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>FA 2012 increases the tax applicable to investment funds and investment life insurance policies to 33 percent.\u00a0 The rates applicable to personal portfolio life policies was increased to 53 percent.<\/p>\n<p>The rate of tax applicable to income from life insurance in EU and EEA and tax treaty\u00a0 states, where the proper tax return is made, is increased to 30 percent.<\/p>\n<p>Where the payment is not part of one of the above types policies and is a personal portfolio life policy, the rate is 33 percent.\u00a0 Income from foreign life policies that are part of the portfolio is taxed at 53 percent.\u00a0 If not included in person&#8217;s return, the tax may be at a marginal rate plus 30 percent which could be up to 71 percent.<\/p>\n<p>Gains in life policies in EU and tax treaty states which are not part of portfolio life policy, is increased to 33 percent. A rate of 53 percent applies to gains from portfolio life policies.<\/p>\n<p>The rate of exit tax under gross roll-up regime for domestic policies is increased by three percent.\u00a0 Where the event is the making of a payment, the tax is deducted at the rate of\u00a0 30 percent.\u00a0 On other occasions, including the deemed eight anniversary disposal,\u00a0 33 percent rate applies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Material_Interest_in_Offshore_Funds\"><\/span>Material Interest in Offshore Funds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The tax payable by individuals on income from a material interest in offshore funds in recognised states,\u00a0 is increased by three percent. Where it is a relevant payment and is included in the tax payer\u2019s return, the rate is 30 percent.\u00a0 If it\u00a0 is\u00a0\u00a0 offshore PPIU fund, a\u00a0 53 percent rate applies.<\/p>\n<p>The rate of tax on gains from material interests in offshore funds in EU and treaty states is increased by three percent, where the amount is returned correctly.\u00a0 The rate of income tax\u00a0 is 33 percent.\u00a0 If it is a PPIU, the rate is 53 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Exemption\"><\/span>Exemption<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is relief from exit tax on life policies where the holder is an approved pension scheme or trust for retirement benefits.\u00a0 The exemption is extended to approved retirement funds and approved minimum retirement funds by FA 2012.<\/p>\n<p>FA 2012 makes provision for taxation of Islamic finance transactions.\u00a0 They are taxed in much the same way as conventional transactions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Investment_Issues\"><\/span>Investment Issues<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The rate of tax on life insurance policies and investment policies for individuals was increased from 33 percent by the Finance Act 2013 to 36 percent.\u00a0 The tax rate applicable to personal portfolio life policies is 56 percent.\u00a0 Corporation tax remains at 25 percent.<\/p>\n<p>In the case of investment income from\u00a0 life insurance policies by entities based in EEA states or OECD tax treaty states, the rate is 33 percent if the income is correctly returned in the tax returns.\u00a0 In other cases, it is 36 percent up from 33 , apart from where the income is not correctly returned. The top rate of 74 percent may apply in the case of personal portfolio policy.\u00a0 In other cases, it is increased to a top rate of 41 percent.<\/p>\n<p>Finance (No.2) Act 2013<\/p>\n<p>A single encashment rate of 41% is applied to life insurance policy and investment funds in lieu of the existing 33% and 36% rate.\u00a0 The higher rates applicable to personal portfolio life policies and personal portfolio investment undertakings were increased from 56% to 60% and 74% to 80% respectively by the 2013 Act<\/p>\n<p>The rates applicable to tax on an\u00a0 individual\u2019s\u00a0 income derived from a material interest in offshore funds is increased to 41% provided the tax return is made on time.\u00a0 In the case of a personal portfolio, the rate of 60% applies.\u00a0 Where it is not correctly included in the taxpayer&#8217;s return, the income from a personal portfolio investment fund is increased from 74% to 80%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2017_Amendments\"><\/span>2017 Amendments<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Finance Act 2017 makes two amendments to the taxation of life products. A life company may not use foreign tax arising on the income which forms part overseas \u00a0business to claim double taxation relief against taxable profits.<\/p>\n<p>The assignment of a life policy as security for a mortgage to a qualifying company is not a chargeable event which triggers an exit tax.<\/p>\n<p>Finance Act 2017 inserts a new provision, which requires investment undertakings needs to provide finance statements electronically to revenue commissioners. The obligation to provide iXPOL finance statements is introduced on a basis to regulations made by revenue commissioners with the consent of the Minster for Finance.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dividends\"><\/span>Dividends<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Where an Irish company pays a dividend to an Irish resident individual, tax must be deducted at te standard rate and paid to the Revenue by the middle of the following month. An Irish resident individual is taxable on the whole of dividend, including the part that has been paid the Revenue. He obtains a credit for the tax withheld, in his own tax return.<\/p>\n<p>Dividend withholding tax does not apply to;<\/p>\n<ul>\n<li>dividend received by Irish companies;<\/li>\n<li>certain other exempt entities, such as pensions funds, collective investment schemes;<\/li>\n<li>residents of other EU and Double Tax Treaty countries<\/li>\n<\/ul>\n<p>Dividends include a number of other categories of income and benefits received from close companies and loans\u00a0at excessive interest rates. This includes benefits in kind. See our chapter on close companies and expenses met by so-called close companies<\/p>\n<p>Dividends received by individuals from Irish resident companies are taxable as income and subject to income tax. Double taxation relief may apply to foreign dividends. In particular, UK dividends are subject to a special arrangement. See the separate chapter regarding UK dividends.<\/p>\n<p>See the chapters on corporation tax relating to dividend withholding tax at company level. See the provisions in relation to close companies, whereby certain expenses incurred by close companies for shareholders and others are deemed dividends. Benefits conferred on shareholders and other participators in companies are taxed in the same way as actual cash dividends.<\/p>\n<p>Dividends received, actual cash dividends, certain bonus issues, redemption of certain shares, interest linked to the company&#8217;s performance, interest on borrowings at more than a commercial rate are taxed as dividends. Certain purchase back of shares which do not qualify for capital gains tax treatment are subject to income tax.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Deemed_Dividends\"><\/span>Deemed Dividends<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is very wide legislation designed to prevent schemes which seek to take monies from a company as a capital payment, subject to capital gains tax (30%) and not subject to income tax. Capital payments from companies are subject to income tax, unless there a substantial reduction in shareholding.<\/p>\n<p>Only genuine reductions of shareholdings, of at least 30% are likely to qualify. The legislation is in quite broad terms and it is easy to fall foul of it.<\/p>\n<p><!--nextpage--><\/p>\n<p>&nbsp;<\/p>\n<h2>TAXES CONSOLIDATION ACT<\/h2>\n<p>Chapter 4<\/p>\n<h4>Interest payments by certain deposit takers (ss. 256-267)<\/h4>\n<p>256.<\/p>\n<p>Interpretation (Chapter 4).<br \/>\n(1)In this Chapter &#8211;<\/p>\n<p>&#8220;amount on account of appropriate tax&#8221; shall be construed in accordance with section 258 (4);<\/p>\n<p>&#8220;appropriate tax&#8221;, in relation to a payment of relevant interest, means &#8211;<br \/>\n(a)as respects the year of assessment 2017, a sum representing income tax on the amount of the payment at the rate of 39 per cent,<br \/>\n(b)as respects the year of assessment 2018, a sum representing income tax on the amount of the payment at the rate of 37 per cent,<br \/>\n(c)as respects the year of assessment 2019, a sum representing income tax on the amount of the payment at the rate of 35 per cent, and<br \/>\n(d)as respects the year of assessment 2020 and each subsequent year of assessment, a sum representing income tax on the amount of the payment at the rate of 33 per cent;<\/p>\n<p>&#8220;building society&#8221; means a building society within the meaning of the Building Societies Act, 1989, or a society established in accordance with the law of any other Member State of the European Communities which corresponds to that Act;<\/p>\n<p>&#8220;credit union&#8221; means a society registered under the Credit Union Act, 1997, including a society deemed to be so registered under section 5(3) of that Act;<\/p>\n<p>&#8220;deposit&#8221; means a sum of money paid to a relevant deposit taker on terms under which it, or any part of it, may be repaid with or without interest and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person to whom it is made, notwithstanding that the amount to be repaid may be to any extent linked to or determined by changes in a stock exchange index or any other financial index;<\/p>\n<p>&#8220;EEA Agreement&#8221; means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;<\/p>\n<p>&#8220;EEA state&#8221; means a state which is a contracting party to the EEA Agreement;<\/p>\n<p>&#8220;foreign currency&#8221; means a currency other than the currency of the State;<\/p>\n<p>&#8220;interest&#8221; means any interest of money whether yearly or otherwise, including any amount, whether or not described as interest, paid in consideration of the making of a deposit, and, as respects &#8211;<br \/>\n(a)a deposit, where the amount to be repaid may be to any extent linked to or determined by changes in a stock exchange index or any other financial index, includes any amount which is or is to be repaid over and above the amount of the deposit,<br \/>\n(b)a building society, includes any dividend or other distribution in respect of shares in the society;<\/p>\n<p>&#8220;long term account&#8221; means an account opened by an individual with a relevant deposit taker on terms under which the individual has agreed that each relevant deposit held in the account is to be held in the account for a period of not less than 5 years;<\/p>\n<p>&#8220;medium term account&#8221; means an account opened by an individual with a relevant deposit taker on terms under which the individual has agreed that each relevant deposit held in the account is to be held in the account for a period of not less than 3 years;<\/p>\n<p>&#8220;pension scheme&#8221; means an exempt approved scheme within the meaning of section 774 or a retirement annuity contract or a trust scheme to which section 784 or 785 applies;<\/p>\n<p>&#8220;PEPP&#8221; has the same meaning as in Chapter 2D of Part 30;<\/p>\n<p>&#8220;PEPP provider&#8221; has the same meaning as in Chapter 2D of Part 30;<\/p>\n<p>&#8220;Personal Retirement Savings Account&#8221; has the same meaning as in section 787A;<\/p>\n<p>&#8220;PRSA provider&#8221; has the same meaning as in Part X of the Pensions Act 1990;<\/p>\n<p>&#8220;relevant amount&#8221; means any amount of income referred to in section 205A(2) and any amount of gains referred to in section 205A(3);<\/p>\n<p>&#8220;relevant deposit&#8221; means a deposit held by a relevant deposit taker, other than a deposit &#8211;<br \/>\n(a)which is made by, and the interest on which is beneficially owned by &#8211;<br \/>\n(i)a relevant deposit taker,<br \/>\n(ii)the National Treasury Management Agency,<br \/>\n(iia)a Fund investment vehicle (within the meaning of section 37 of the National Treasury Management Agency (Amendment) Act 2014) of which the Minister for Finance is the sole beneficial owner,<br \/>\n(iii)the State acting through the National Treasury Management Agency,<br \/>\n(iiia)[deleted]<br \/>\n(iiib)[deleted]<br \/>\n(iiic)[deleted]<br \/>\n(iiid)the National Asset Management Agency,<br \/>\n(iiie)the State acting through the National Asset Management Agency,<br \/>\n(iiif)the Strategic Banking Corporation of Ireland or a subsidiary wholly owned by it or a subsidiary wholly owned by any such subsidiary,<br \/>\n(iiig)the Minister for Social Protection in respect of accounts held under section 9 of the Social Welfare Consolidation Act 2005,<br \/>\n(iv)the Central Bank of Ireland,<br \/>\n(v)The Investor Compensation Company Limited, or<br \/>\n(vi)Icarom plc,<br \/>\n(b)which is a debt on a security issued by the relevant deposit taker and listed on a stock exchange,<br \/>\n(c)which, in the case of a relevant deposit taker resident in the State for the purposes of corporation tax, is held at a branch of the relevant deposit taker situated outside the State,<br \/>\n(d)which, in the case of a relevant deposit taker not resident in the State for the purposes of corporation tax, is held otherwise than at a branch of the relevant deposit taker situated in the State,<br \/>\n(e)which is a deposit denominated in a foreign currency made &#8211;<br \/>\n(i)by a person other than an individual before the 1st day of January, 1993, or<br \/>\n(ii)by an individual before the 1st day of June, 1991,<br \/>\nbut, where on or after the 1st day of June, 1991, and before the 1st day of January, 1993, a deposit denominated in a foreign currency is made by an individual to a relevant deposit taker with whom the individual had a deposit denominated in the same foreign currency immediately before the 1st day of June, 1991, such a deposit shall not be regarded as a relevant deposit,<br \/>\n(f)<br \/>\n(i)which is made on or after the 1st day of January, 1993, by, and the interest on which is beneficially owned by &#8211;<br \/>\n(I)a company which is or will be within the charge to corporation tax in respect of the interest, or<br \/>\n(II)a pension scheme,<br \/>\nand<br \/>\n(ii)in respect of which the company or pension scheme which is the beneficial owner of the interest has provided the relevant deposit taker with that person&#8217;s tax reference number (within the meaning of section 885) or where, in the case of a pension scheme, there is no such number, with the number assigned by the Revenue Commissioners to the employer to whom that pension scheme relates,<br \/>\n(g)in respect of which &#8211;<br \/>\n(i)no person resident in the State is beneficially entitled to any interest, and<br \/>\n(ii)a declaration of the kind mentioned in section 263 has been made to the relevant deposit taker,<br \/>\n(h)<br \/>\n(i)the interest on which is exempt &#8211;<br \/>\n(I)from income tax under Schedule D by virtue of section 207(1)(b), or<br \/>\n(II)from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),<br \/>\nand<br \/>\n(ii)in respect of which the beneficial owner of the interest has provided the relevant deposit taker with the reference number assigned to that person by the Revenue Commissioners in recognition of that person&#8217;s entitlement to exemption from tax under section 207 and known as the charity (CHY) number;<br \/>\n(i)which is a deposit referred to in subsection (1A),<br \/>\n(j)which is a deposit referred to in subsection (1B),<br \/>\n(k)which is made by a PRSA provider and which is held for the purposes of a Personal Retirement Savings Account, where the PRSA provider has provided the relevant deposit taker with the number assigned to that provider by the Revenue Commissioners, or<br \/>\n(l)which is made by a PEPP provider, held for the purposes of a PEPP and in respect of which a declaration in accordance with section 263F has been made to the relevant deposit taker;<\/p>\n<p>&#8220;relevant deposit taker&#8221; means any of the following persons &#8211;<br \/>\n(a)a person who is a holder of a licence granted under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971, or a person who holds a licence or other similar authorisation under the law of an EEA state, other than the State, which corresponds to a licence granted under the said section 9,<br \/>\n(b)a building society,<br \/>\n(c)a trustee savings bank within the meaning of the Trustee Savings Banks Acts, 1863 to 1989,<br \/>\n(ca)a credit union,<br \/>\n(cb)a specified intermediary in relation only to a specified deposit,<br \/>\n(d)[deleted]<br \/>\n(e)[deleted]<br \/>\n(f)[deleted]<br \/>\n(g)the Post Office Savings Bank;<\/p>\n<p>&#8220;relevant interest&#8221; means, subject to section 261A, interest paid in respect of a relevant deposit;<\/p>\n<p>&#8220;return&#8221; means a return under section 258(2);<\/p>\n<p>&#8220;special savings account&#8221; means an account opened on or after 1 January 1993 and before 6 April 2001, in which a relevant deposit or relevant deposits made by an individual is or are held and in respect of which &#8211;<br \/>\n(a)the conditions in section 264(1) are satisfied, and<br \/>\n(b)a declaration of the kind mentioned in section 264(2) has been made to the relevant deposit taker;<\/p>\n<p>&#8220;special term account&#8221; means &#8211;<br \/>\n(a)a medium term account, or<br \/>\n(b)a long term account,<br \/>\nbeing an account in which a relevant deposit or relevant deposits made by an individual is or are held and in respect of which &#8211;<br \/>\n(i)the conditions specified in section 264A(1) are satisfied, and<br \/>\n(ii)a declaration of the kind mentioned in section 264A(2) has been made to the relevant deposit taker;<\/p>\n<p>&#8220;special term share account&#8221; has the same meaning as in section 267A;<\/p>\n<p>&#8220;specified deposit&#8221; means a deposit of a class designated by the Minister for Finance for the purposes of this definition;<\/p>\n<p>&#8220;specified intermediary&#8221; means a person appointed by the National Treasury Management Agency for the purposes only of taking specified deposits.<\/p>\n<p>(1A)A deposit shall be a deposit to which this subsection refers as respects any year of assessment if &#8211;<\/p>\n<p>(a)<\/p>\n<p>(i)at any time in that year of assessment the individual beneficially entitled to the interest or the individual&#8217;s spouse or civil partner has attained the age of 65 years, and<\/p>\n<p>(ii)the total income of the individual for that year of assessment does not exceed the specified amount (within the meaning of section 188(2)) applicable to that individual,<\/p>\n<p>and<\/p>\n<p>(b)a declaration of the kind mentioned in section 263A has been made to the relevant deposit taker.<\/p>\n<p>(1B)A deposit shall be a deposit to which this subsection refers as respects any year of assessment if &#8211;<\/p>\n<p>(a)<\/p>\n<p>(i)the individual beneficially entitled to any interest paid in respect of that deposit in that year of assessment, or the individual&#8217;s spouse or civil partner, is a relevant person (within the meaning of section 267(1)(b)) and the individual would, in accordance with section 267(3), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest, or<\/p>\n<p>(ii)the person entitled to any interest paid in respect of that deposit in that year of assessment is a person who is exempt from income tax by virtue of section 189A(2) and that person would, in accordance with section 267(2), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest,<\/p>\n<p>(b)a declaration of the kind mentioned in section 263B has been made to the Revenue Commissioners,<\/p>\n<p>(c)a notification of the kind mentioned in section 263C has been issued by the Revenue Commissioners to the relevant deposit taker that the deposit is a deposit to which this subsection refers and that notification is not cancelled in accordance with section 263C(2), and<\/p>\n<p>(d)the individual beneficially entitled to the interest is not an individual referred to in subsection (1A), other than an individual who is a relevant person within the meaning of section 267(1)(b),<\/p>\n<p>and where, by virtue of section 263C(2), a deposit is not a deposit to which this subsection refers as respects any year of assessment, then the Revenue Commissioners shall notify the deposit taker accordingly and where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this subsection applies from that time.<\/p>\n<p>(1C)A deposit shall be a deposit to which this subsection refers as respects any year of assessment if &#8211;<\/p>\n<p>(a)the deposit is solely in respect of a relevant amount,<\/p>\n<p>(b)a declaration of the kind mentioned in section 263D has been made to the Revenue Commissioners, and<\/p>\n<p>(c)a notification of the kind mentioned in section 263E has been issued by the Revenue Commissioners to the relevant deposit taker that the deposit is not a relevant deposit.<\/p>\n<p>(2)For the purposes of this Chapter &#8211;<\/p>\n<p>(a)any amount credited as interest in respect of a relevant deposit shall be treated as a payment of interest, and references in this Chapter to relevant interest being paid shall be construed accordingly,<\/p>\n<p>(b)any reference in this Chapter to the amount of a payment of relevant interest shall be construed as a reference to the amount which would be the amount of that payment if no appropriate tax were to be deducted from that payment, and<\/p>\n<p>(c)a deposit shall be treated as held at a branch of a relevant deposit taker if it is recorded in its books as a liability of that branch.<\/p>\n<p>(3)As respects any specified deposits, the relevant deposit taker shall obtain the tax reference number (within the meaning of section 885) of the person making the deposit and the person making the deposit shall provide the tax reference number.<\/p>\n<p>257.<\/p>\n<h4>Deduction of tax from relevant interest.<\/h4>\n<p>(1)Where a relevant deposit taker makes a payment of relevant interest &#8211;<\/p>\n<p>(a)the relevant deposit taker shall deduct out of the amount of the payment the appropriate tax in relation to the payment,<\/p>\n<p>(b)the person to whom such payment is made shall allow such deduction on the receipt of the residue of the payment, and<\/p>\n<p>(c)the relevant deposit taker shall be acquitted and discharged of so much money as is represented by the deduction as if that amount of money had actually been paid to the person.<\/p>\n<p>(2)A relevant deposit taker shall treat every deposit made with it as a relevant deposit unless satisfied that such a deposit is not a relevant deposit; but, where a relevant deposit taker has satisfied itself that a deposit is not a relevant deposit, it shall be entitled to continue to so treat the deposit until such time as it is in possession of information which can reasonably be taken to indicate that the deposit is or may be a relevant deposit.<\/p>\n<p>(3)Any payment of relevant interest which is within subsection (1) shall be treated as not being within section 246.<\/p>\n<p>258.<\/p>\n<h4>Returns and collection of appropriate tax.<\/h4>\n<p>(1)Notwithstanding any other provision of the Tax Acts, this section shall apply for the purpose of regulating the time and manner in which appropriate tax in relation to a payment of relevant interest shall be accounted for and paid.<\/p>\n<p>(2)Subject to subsection (5), a relevant deposit taker shall make for each year of assessment, within 15 days from the end of the year of assessment, a return to the Collector-General of the relevant interest paid by it in that year and of the appropriate tax in relation to the payment of that interest.<\/p>\n<p>(3)The appropriate tax in relation to a payment of relevant interest which is required to be included in a return shall be due at the time by which the return is to be made and shall be paid by the relevant deposit taker to the Collector-General, and the appropriate tax so due shall be payable by the relevant deposit taker without the making of an assessment; but appropriate tax which has become so due may be assessed on the relevant deposit taker (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.<\/p>\n<p>(4)<\/p>\n<p>(a)Notwithstanding subsection (3), a relevant deposit taker shall for each year of assessment pay an amount of appropriate tax to the Collector-General within 21 days of each of the following dates in that year of assessment &#8211;<\/p>\n<p>(i)31 March,<\/p>\n<p>(ii)30 June, and<\/p>\n<p>(iii)30 September.<\/p>\n<p>(b)The amount to be paid &#8211;<\/p>\n<p>(i)within 21 days of 31 March as referred to in paragraph (a)(i) shall not be less than the amount of appropriate tax which would be due and payable by the relevant deposit taker for the year of assessment concerned under subsection (3) if the total amount of the relevant interest which had accrued in the period commencing on 1 January and ending on 31 March,<\/p>\n<p>(ii)within 21 days of 30 June as referred to in paragraph (a)(ii) shall not be less than the amount of appropriate tax which would be due and payable by the relevant deposit taker for the year of assessment concerned under subsection (3) if the total amount of the relevant interest which had accrued in the period commencing on 1 April and ending on 30 June, and<\/p>\n<p>(iii)within 21 days of 30 September as referred to in paragraph (a)(iii) shall not be less than the amount of appropriate tax which would be due and payable by the relevant deposit taker for the year of assessment concerned under subsection (3) if the total amount of the relevant interest which had accrued in the period commencing on 1 July and ending on 30 September,<\/p>\n<p>in that year of assessment on all relevant deposits held by the relevant deposit taker in that period (and no more) had been paid by it in that year of assessment.<\/p>\n<p>(c)Any amount on account of appropriate tax so paid by the relevant deposit taker for any year of assessment shall be treated as far as may be as a payment on account of any appropriate tax due and payable by it for that year of assessment under subsection (3).<\/p>\n<p>(d)For the purposes of paragraph (b), interest shall be treated as accruing from day to day if not otherwise so treated.<\/p>\n<p>(e)Where the amount on account of appropriate tax paid by a relevant deposit taker for any year of assessment under this subsection exceeds the amount of appropriate tax due and payable by it for that year of assessment under subsection (3), the excess shall be carried forward and shall be set off against any amount due and payable under this subsection or subsection (3) by the relevant deposit taker for any subsequent year of assessment (any such set-off being effected as far as may be against an amount so due and payable at an earlier date rather than at a later date).<\/p>\n<p>(4A)For the purposes of this section and subject to subsection (4B), interest payable by a relevant deposit taker in respect of a relevant deposit, other than interest which cannot be determined until the date of payment of such interest, notwithstanding that the terms under which the deposit was made are complied with fully, shall be deemed &#8211;<\/p>\n<p>(a)to accrue from day to day, and<\/p>\n<p>(b)to be relevant interest paid by the relevant deposit taker on 31 December in each year of assessment to the extent that &#8211;<\/p>\n<p>(i)it is deemed to accrue in that year of assessment, and<\/p>\n<p>(ii)it is not paid in that year of assessment,<\/p>\n<p>and the relevant deposit taker shall account for appropriate tax accordingly.<\/p>\n<p>(4B)<\/p>\n<p>(a)Where, apart from subsection (4A), a relevant deposit taker makes a payment of relevant interest which is or includes interest (in paragraph (b) referred to as &#8216;accrued interest&#8217;) which, by virtue of that subsection, is deemed to have been paid by the relevant deposit taker on 31 December in a year of assessment, the relevant deposit taker shall &#8211;<\/p>\n<p>(i)deduct out of the whole of the amount of that payment the appropriate tax in relation to that payment in accordance with section 257, and<\/p>\n<p>(ii)account for that appropriate tax under this section,<\/p>\n<p>and that appropriate tax shall be due and payable by the relevant deposit taker in accordance with this section.<\/p>\n<p>(b)So much of the appropriate tax paid by the relevant deposit taker by virtue of subsection (4A) as is referable to accrued interest included in a payment of relevant interest referred to in paragraph (a) shall be set off against any amount of appropriate tax due and payable by the relevant deposit taker for the year of assessment in which that payment of interest is made or against any amount, or amount on account of, appropriate tax due and payable by it for a year of assessment subsequent to that year (any such set-off being effected as far as may be against an amount so due and payable at an earlier date rather than a later date).<\/p>\n<p>(5)<\/p>\n<p>(a)Any amount on account of appropriate tax payable by a relevant deposit taker under subsection (4) shall be so payable without the making of an assessment.<\/p>\n<p>(b)The provisions of this Chapter relating to the collection and recovery of appropriate tax shall, with any necessary modifications, apply to the collection and recovery of any amount on account of appropriate tax.<\/p>\n<p>(c)A return required to be made by a relevant deposit taker for any year of assessment shall contain a statement of the amount of interest in respect of which an amount on account of appropriate tax is due and payable by the relevant deposit taker for that year of assessment and of the amount on account of appropriate tax so due and payable, and a return shall be so required to be made by a relevant deposit taker for a year of assessment notwithstanding that no relevant interest was paid by it in the year of assessment.<\/p>\n<p>(6)Where it appears to the inspector that there is any amount of appropriate tax in relation to a payment of relevant interest which ought to have been but has not been included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the relevant deposit taker to the best of his or her judgment, and any amount of appropriate tax in relation to a payment of relevant interest due under an assessment made by virtue of this subsection shall be treated for the purposes 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.<\/p>\n<p>(7)Where any item has been incorrectly included in a return as a payment of relevant interest, the inspector may make such assessments, adjustments or set-offs as may in his or her judgment be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the relevant deposit taker 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.<\/p>\n<p>(8)<\/p>\n<p>(a)Any appropriate tax assessed on a relevant deposit taker under this Chapter shall be due within one month after the issue of the notice of assessment (unless that tax or any amount treated as an amount on account of that tax is due earlier under subsection (3) or (4)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under subsection (3) or (4).<\/p>\n<p>(b)Notwithstanding subsection (4)(e), on the determination of an appeal against an assessment under this Chapter, any appropriate tax overpaid shall be repaid.<\/p>\n<p>(9)<\/p>\n<p>(a)The provisions of the Income Tax Acts relating to &#8211;<\/p>\n<p>(i)assessments to income tax, and<\/p>\n<p>(ii)the collection and recovery of income tax,<\/p>\n<p>shall, in so far as they are applicable, apply to the assessment, collection and recovery of appropriate tax.<\/p>\n<p>(b)Any amount of appropriate tax or amount on account of appropriate tax payable in accordance with this Chapter without the making of an assessment shall carry interest from the date when the amount becomes due and payable until payment &#8211;<\/p>\n<p>(i)for any day or part of a day before 1 July 2009 during which the amount remains unpaid, at a rate of 0.0322 per cent, and<\/p>\n<p>(ii)for any day or part of a day on or after 1 July 2009 during which the amount remains unpaid, at a rate of 0.0274 per cent.<\/p>\n<p>(c)Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080.<\/p>\n<p>(d)In its application to any appropriate tax charged by any assessment made in accordance with this Chapter, section 1080 shall apply as if subsection (1)(b) of that section were deleted.<\/p>\n<p>(9A)<\/p>\n<p>(a)Subject to paragraph (b), a relevant deposit taker aggrieved by an assessment made on that person under this section 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.<\/p>\n<p>(b)Where, in accordance with this section, a relevant deposit taker is required to make a return and account for appropriate tax to the Collector-General, no appeal lies against an assessment until such time as the relevant deposit taker makes the return and pays or has paid the amount of the appropriate tax payable on the basis of that return.<\/p>\n<p>(10)Every return shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.<\/p>\n<p>259.<\/p>\n<h4>Alternative amount on account of appropriate tax.<\/h4>\n<p>(1)For the purposes of this section &#8211;<\/p>\n<p>(a)interest shall be treated, if not otherwise so treated, as accruing from day to day, and<\/p>\n<p>(b)references to &#8220;general crediting date&#8221;, as respects a relevant deposit taker, shall be construed as references to a date on which the relevant deposit taker credits to all, or to the majority, of relevant deposits held by it on that date interest accrued due on those deposits (whether or not the interest is added to the balances on the relevant deposits on that date for the purpose of calculating interest due at some future date).<\/p>\n<p>(2)Where for any year of assessment the amount of appropriate tax due and payable by a relevant deposit taker for that year under section 258 is less than the amount of appropriate tax which would have been so due and payable by the relevant deposit taker for that year if the total amount of the interest which had accrued, in the period of 12 months ending on &#8211;<\/p>\n<p>(a)the general crediting date as respects that relevant deposit taker falling in that year of assessment,<\/p>\n<p>(b)if there is more than one general crediting date as respects that relevant deposit taker falling in that year of assessment, the last such date, or<\/p>\n<p>(c)if there is no general crediting date as respects that relevant deposit taker falling in that year of assessment, 31 December in that year,<\/p>\n<p>on all relevant deposits held by the relevant deposit taker in that period (and no more) had been paid by it in that period, this section shall apply to that relevant deposit taker for the year of assessment succeeding that year of assessment and for each subsequent year of assessment.<\/p>\n<p>(3)Notwithstanding anything in section 258, where this section applies to a relevant deposit taker for any year of assessment, section 258(4) shall not apply to the relevant deposit taker for that year of assessment but subsection (4) shall apply to that relevant deposit taker for that year and, as respects that relevant deposit taker for that year, any reference in the Tax Acts (apart from this section) to section 258(4) shall be construed as a reference to subsection (4).<\/p>\n<p>(4)<\/p>\n<p>(a)<\/p>\n<p>(i)Subject to subparagraph (ii) and notwithstanding section 258(3), a relevant deposit taker shall for each year of assessment pay to the Collector-General, within 21 days of each of the dates referred to in subparagraphs (i), (ii) and (iii) of section 258(4)(a) (each of which dates, as the case may be, is referred to in the Table to this subparagraph as the &#8216;relevant quarterly date&#8217;) in that year of assessment, an amount on account of appropriate tax which shall be not less than the amount determined by the formula set out in the Table to this subparagraph, and any amount on account of appropriate tax so paid by the relevant deposit taker for a year of assessment shall be treated as far as may be as a payment on account of any appropriate tax due and payable by it for that year of assessment under section 258(3).<\/p>\n<p>Table<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of appropriate tax which would be due and payable by the relevant deposit taker for the year of assessment (in this Table referred to as &#8216;the relevant year&#8217;) in accordance with section 258(3) if the total amount of the relevant interest which had accrued in the period of 12 months ending on the relevant quarterly date in the relevant year on all relevant deposits held by the relevant deposit taker in that period (and no more) had been paid by it in the relevant year,<\/p>\n<p>Bis the amount of appropriate tax which was due and payable by the relevant deposit taker for the year of assessment preceding the relevant year in accordance with section 258(3), and<\/p>\n<p>Cis an amount equal to the lesser of the amount at B and the amount treated, in accordance with this subsection or section 258(4), as paid by the relevant deposit taker on account of the appropriate tax due and payable by it for the year of assessment preceding the relevant year.<\/p>\n<p>(ii)Notwithstanding section 258(3), the aggregate of the amounts on account of appropriate tax due in accordance with subparagraphs (i) and (iii) shall not, in any event, be less than the amount determined by the formula set out in the Table to this subparagraph.<\/p>\n<p>Table<\/p>\n<p>A &#8211; (B &#8211; C)<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of appropriate tax which would be due and payable by the relevant deposit taker for the year of assessment (in this Table referred to as &#8216;the relevant year&#8217;) in accordance with section 258(3) if the total amount of the relevant interest which had accrued in the period of 12 months ending on 30 September in the relevant year on all relevant deposits held by the relevant deposit taker in that period (and no more) had been paid by it in the relevant year,<\/p>\n<p>Bis the amount of appropriate tax which was due and payable by the relevant deposit taker for the year of assessment preceding the relevant year in accordance with section 258(3), and<\/p>\n<p>Cis an amount equal to the lesser of the amount at B and the amount treated, in accordance with this subsection or section 258(4), as paid by the relevant deposit taker on account of the appropriate tax due and payable by it for the year of assessment preceding the relevant year.<\/p>\n<p>(iii)Where, for any year of assessment the amount computed in accordance with subparagraph (ii) exceeds the aggregate of the amounts computed in accordance with subparagraph (i), and without prejudice to the obligation to pay any amount computed in accordance with subparagraph (i), that excess shall be paid by the relevant deposit taker to the Collector-General within 21 days of 30 September in that year of assessment and shall be treated as far as may be as a payment on account of any appropriate tax due and payable by it for that year of assessment under section 258(3).<\/p>\n<p>(b)Where the amount on account of appropriate tax paid by a relevant deposit taker for any year of assessment under this subsection exceeds the amount of appropriate tax due and payable by it for that year of assessment under section 258(3), the excess shall be carried forward and shall be set off against any amount due and payable under this subsection or section 258(3) by the relevant deposit taker for any subsequent year of assessment (any such set-off being effected as far as may be against an amount so due and payable at an earlier date rather than at a later date).<\/p>\n<p>260.<\/p>\n<h4>Provisions supplemental to sections 258 and 259.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;specified deposit&#8221; means a relevant deposit made on or after the 28th day of March, 1996, in respect of which specified interest is payable other than such a deposit &#8211;<\/p>\n<p>(a)which is held in a special savings account, or<\/p>\n<p>(b)in respect of which &#8211;<\/p>\n<p>(i)the interest payable is to any extent linked to or determined by changes in a stock exchange index or any other financial index,<\/p>\n<p>(ii)arrangements were, or were being put, in place by the relevant deposit taker before the 28th day of March, 1996, to accept such a deposit, and<\/p>\n<p>(iii)the deposit is made on or before the 7th day of June, 1996;<\/p>\n<p>&#8220;specified interest&#8221; means interest in respect of a specified deposit, other than so much of the amount of that interest as &#8211;<\/p>\n<p>(a)is payable annually or at more frequent intervals, or<\/p>\n<p>(b)cannot be determined until the date of payment of such interest, notwithstanding that the terms under which the deposit was made are complied with fully.<\/p>\n<p>(2)<\/p>\n<p>(a)Subject to this section, specified interest shall for the purposes of section 258 be deemed &#8211;<\/p>\n<p>(i)to accrue from day to day, and<\/p>\n<p>(ii)to be relevant interest paid by the relevant deposit taker in each year of assessment to the extent that &#8211;<\/p>\n<p>(I)it is deemed to accrue in that year of assessment, and<\/p>\n<p>(II)it is not paid in that year of assessment,<\/p>\n<p>and the relevant deposit taker shall account for appropriate tax accordingly.<\/p>\n<p>(b)The amount of specified interest deemed to be relevant interest paid by a relevant deposit taker in any year of assessment by virtue of this subsection shall not be less than such amount as would be deductible in respect of interest or any other amount payable on the specified deposit in computing the income of the relevant deposit taker for the year of assessment if the year of assessment were an accounting period of the relevant deposit taker.<\/p>\n<p>(3)<\/p>\n<p>(a)Where apart from subsection (2) a relevant deposit taker makes a payment of relevant interest which is or includes specified interest, the relevant deposit taker shall &#8211;<\/p>\n<p>(i)deduct out of the whole of the amount of that payment the appropriate tax in relation to that payment in accordance with section 257, and<\/p>\n<p>(ii)account for that appropriate tax under section 258,<\/p>\n<p>and that appropriate tax shall be due and payable by the relevant deposit taker in accordance with section 258.<\/p>\n<p>(b)So much of the amount of appropriate tax paid by the relevant deposit taker by virtue of subsection (2) as is referable to specified interest included in a payment of relevant interest referred to in paragraph (a) shall be set off against any amount of appropriate tax due and payable by the relevant deposit taker for the year of assessment in which that payment of interest is made or against any amount, or amount on account of, appropriate tax due and payable by it for a year of assessment subsequent to that year (any such set-off being effected as far as may be against an amount so due and payable at an earlier date rather than at a later date).<\/p>\n<p>(4)Subsection (2) shall not apply for any year of assessment where, for that year of assessment and all preceding years of assessment &#8211;<\/p>\n<p>(a)in accordance with section 258(4) or 259(4), as may be appropriate, a relevant deposit taker makes a payment on account of appropriate tax in respect of specified interest as if, in relation to each specified deposit held by it, the references &#8211;<\/p>\n<p>(i)in section 258(4), to each of the periods referred to in subparagraphs (i), (ii) and (iii) of paragraph (b) of section 258(4) in the year of assessment, were a reference to the period beginning on the date on which the specified deposit was made and ending on each date referred to in subparagraphs (i), (ii) and (iii) of section 258(4)(a), as the case may be, in the year of assessment,<\/p>\n<p>(ii)in section 259(4)(i), where it occurs in the meaning assigned to &#8216;A&#8217;, to the period of 12 months ending on each of the dates referred to in subparagraphs (i), (ii) and (iii) of section 258(4)(a) in the relevant year, were a reference to the period beginning on the date on which the specified deposit was made and ending on each date referred to in subparagraphs (i), (ii) and (iii) of section 258(4)(a), as the case may be, in the year of assessment, and<\/p>\n<p>(iii)in section 259(4)(ii), where it occurs in the meaning assigned to &#8216;A&#8217;, to the period of 12 months ending on 30 September in the relevant year, were a reference to the period beginning on the date on which the specified deposit was made and ending on 30 September in the year of assessment,<\/p>\n<p>and<\/p>\n<p>(b)the full amount payable on account of appropriate tax by the relevant deposit taker in that year of assessment in accordance with section 258(4) or 259(4), including any amount payable in accordance with those sections as modified by paragraph (a), before the set-off of any amount on account of appropriate tax paid in an earlier year of assessment, does not exceed the appropriate tax payable by the relevant deposit taker for that year of assessment.<\/p>\n<p>261.<\/p>\n<h4>Taxation of relevant interest, etc.<\/h4>\n<p>Notwithstanding anything in the Tax Acts &#8211;<\/p>\n<p>(a)no part of any interest paid by a building society in respect of any shares in the society shall be treated for the purposes of the Corporation Tax Acts as a distribution of the society or as franked investment income of any company resident in the State;<\/p>\n<p>(b)except where otherwise provided for in section 267, no repayment of appropriate tax in respect of any relevant interest shall be made to any person receiving or entitled to the payment of the relevant interest who is not a company within the charge to corporation tax in respect of the payment;<\/p>\n<p>(c)<\/p>\n<p>(i)the amount of any payment of relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D, and under no other Case or Schedule, and shall be taken into account in computing the total income of the person entitled to that amount, but, in relation to such a person (other than a company) &#8211;<\/p>\n<p>(I)except for the purposes of a claim to repayment under section 267(3), the specified amount within the meaning of section 188 shall, as respects the year of assessment for which he or she is to be charged to income tax in respect of the relevant interest, be increased by the amount of that payment,<\/p>\n<p>(II) where the taxable income of that person includes relevant interest, the part of taxable income equal to that relevant interest shall be chargeable to tax at the rate at which tax was deducted from that relevant interest,<\/p>\n<p>(III)[deleted]<\/p>\n<p>and<\/p>\n<p>(ii)where the specified amount is so increased, references in section 188 to &#8211;<\/p>\n<p>(I)income tax payable shall be construed as references to the income tax payable after credit is given by virtue of paragraph (d) for appropriate tax deducted from the payment of relevant interest, and<\/p>\n<p>(II)a sum equal to twice the specified amount shall be construed as references to a sum equal to the aggregate of &#8211;<\/p>\n<p>(A)twice the specified amount (before it is so increased), and<\/p>\n<p>(B)the amount of the payment of relevant interest;<\/p>\n<p>(d)where relevant interest is to be taken into account in computing the total income of a person (other than a company) for any year of assessment, then, for the purpose of charging that total income to tax at the rate or rates of tax relevant interest for that year of assessment, the following provisions shall apply &#8211;<\/p>\n<p>(i)the relevant interest shall be regarded as income chargeable to tax under Case IV of Schedule D and shall be charged accordingly, and<\/p>\n<p>(ii)in determining the amount of tax payable on that relevant interest, credit shall be given for the appropriate tax deducted from the relevant interest and the amount of the credit shall be the amount of such appropriate tax.<\/p>\n<p>261A.<\/p>\n<h4>Taxation of interest on special term accounts.<\/h4>\n<p>(1)Where interest is paid by a relevant deposit taker in respect of a relevant deposit held in a special term account that is opened before 16 October 2013, such interest shall be relevant interest for the purposes of this Chapter only to the extent provided for in this section.<\/p>\n<p>(2)Interest paid in a year of assessment in respect of a relevant deposit held in a medium term account shall &#8211;<\/p>\n<p>(a)be relevant interest only to the extent that such interest exceeds \u20ac480, and<\/p>\n<p>(b)as respects the first \u20ac480 of such interest, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.<\/p>\n<p>(3)Interest paid in a year of assessment in respect of a relevant deposit held in a long term account shall &#8211;<\/p>\n<p>(a)be relevant interest only to the extent that such interest exceeds \u20ac635, and<\/p>\n<p>(b)as respects the first \u20ac635 of such interest, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.<\/p>\n<p>(4)Where an individual opens a medium term account, the individual may subsequently make an election in writing to the relevant deposit taker to have the account converted to a long term account.<\/p>\n<p>(5)Where an election is made in accordance with subsection (4), interest paid in a year of assessment which commences on or after the date the election is made shall &#8211;<\/p>\n<p>(a)be relevant interest only to the extent that such interest exceeds \u20ac635, and<\/p>\n<p>(b)as respects the first \u20ac635 of such interest, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.<\/p>\n<p>(6)Subject to subsection (8), section 261 shall apply in relation to any relevant interest paid in respect of a relevant deposit held in a special term account, as if the following paragraph were substituted for paragraph (c) of that section:<\/p>\n<p>&#8216;(c)the amount of any payment of relevant interest paid in respect of any relevant deposit held in a special term account shall not, except for the purposes of a claim to repayment under section 267(3) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts;&#8217;.<\/p>\n<p>(7)An account shall cease to be a special term account if any of the conditions specified in section 264A(1) cease to be satisfied, and where that occurs &#8211;<\/p>\n<p>(a)all interest paid on or after the occurrence in respect of relevant deposits held in the account shall be relevant interest,<\/p>\n<p>(b)all interest (in this paragraph referred to as &#8216;past interest&#8217;) paid prior to the occurrence, in respect of relevant deposits held in the account, shall be treated by the relevant deposit taker as relevant interest to the extent that such interest has not already been treated as relevant interest, and &#8211;<\/p>\n<p>(i)the provisions of section 257(1) shall apply as if the payment of past interest was being made on the date of the occurrence, and<\/p>\n<p>(ii)where on that date the past interest has already been withdrawn from the account &#8211;<\/p>\n<p>(I)the relevant deposit taker shall deduct from the relevant deposits held in the account on that date, an amount equal to the amount of the appropriate tax which would have been deducted from the past interest under subparagraph (i), but for the withdrawal, and such amount shall be treated as appropriate tax, and<\/p>\n<p>(II)the provisions of paragraphs (b) and (c) of section 257(1) shall apply to such deduction as they apply to a deduction from relevant interest.<\/p>\n<p>(8)Subsection (6) shall not apply to any interest in respect of any relevant deposit held in the account which is paid, or by virtue of subsection (7) treated as paid, on or after the date on which the account ceases to be a special term account.<\/p>\n<p>(9)An account shall cease to be a special term account on a date which is-<\/p>\n<p>(a)3 years after the day on which the account was opened if the account is a medium term account, or<\/p>\n<p>(b)5 years after the day on which the account was opened if the account is a long term account, including an account which was opened as a medium term account but which was subsequently converted into a long term account.<\/p>\n<p>261B.<\/p>\n<h4>Taxation of specified interest.<\/h4>\n<p>(1)In this section &#8216;specified interest&#8217; means interest arising to a person in respect of a deposit in relation to which a declaration has been made by the person under subsection (1A), (1B), or (1C) of section 256 and which is not included in relevant interest for the purposes of paragraph (c)(i)(II) of section 261.<\/p>\n<p>(2)Notwithstanding section 15, where the taxable income of that person includes specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate at which tax would have been deducted, from that interest, if a declaration under subsection (1A) or (1B) of section 256 had not been made.<\/p>\n<p>(3)Section 246(2) does not apply to a payment of specified interest if it would otherwise apply.<\/p>\n<p>262.<\/p>\n<h4>Statement furnished by relevant deposit taker.<\/h4>\n<p>A relevant deposit taker shall furnish to every person entitled to any relevant interest on a relevant deposit held by the relevant deposit taker as respects any payment of such relevant interest, a statement showing &#8211;<\/p>\n<p>(a)the amount of that payment,<\/p>\n<p>(b)the amount of appropriate tax deducted from that payment,<\/p>\n<p>(c)the net amount of that payment, and<\/p>\n<p>(d)the date of that payment.<\/p>\n<p>263.<\/p>\n<h4>Declarations relating to deposits of non-residents.<\/h4>\n<p>(1)The declaration referred to in paragraph (g)(ii) of the definition of &#8220;relevant deposit&#8221; in section 256(1) shall be a declaration in writing to a relevant deposit taker which &#8211;<\/p>\n<p>(a)is made by a person (in this section referred to as &#8220;the declarer&#8221;) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer,<\/p>\n<p>(b)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(c)declares that at the time when the declaration is made the person beneficially entitled to the interest in relation to the deposit is not, or, as the case may be, all of the persons so entitled are not, resident in the State,<\/p>\n<p>(d)contains as respects the person or, as the case may be, each of the persons mentioned in paragraph (c) &#8211;<\/p>\n<p>(i)the name of the person,<\/p>\n<p>(ii)the address of the person&#8217;s principal place of residence, and<\/p>\n<p>(iii)the name of the country in which the person is resident at the time the declaration is made,<\/p>\n<p>(e)contains an undertaking by the declarer that if the person or, as the case may be, any of the persons mentioned in paragraph (c) becomes resident in the State, the declarer will notify the relevant deposit taker accordingly, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter;<\/p>\n<p>and a declaration made before the 27th day of May, 1986, in a form authorised by the Revenue Commissioners under paragraph (22) of Financial Resolution No. 12 passed by D\u00e1il \u00c9ireann on the 30th day of January, 1986, shall be deemed for the purposes of this Chapter to be a declaration of the kind mentioned in this subsection.<\/p>\n<p>(2)<\/p>\n<p>(a)A relevant deposit taker shall &#8211;<\/p>\n<p>(i)keep and retain for the longer of the following periods &#8211;<\/p>\n<p>(I)a period of 6 years, and<\/p>\n<p>(II)a period which, in relation to the deposit in respect of which the declaration is made, ends not earlier than 3 years after the date on which the deposit is repaid or, as the case may be, becomes a relevant deposit, and<\/p>\n<p>(ii)on being so required by notice given to it in writing by an inspector, make available to the inspector, within the time specified in the notice,<\/p>\n<p>all declarations of the kind mentioned in subsection (1) which have been made in respect of deposits held by the relevant deposit taker.<\/p>\n<p>(b)The inspector may examine or take extracts from or copies of any declarations made available to him or her under paragraph (a).<\/p>\n<p>263A.<\/p>\n<h4>Declarations to a relevant deposit taker relating to deposits of certain persons.<\/h4>\n<p>(1)The declaration referred to in section 256(1A) is a declaration in writing to a relevant deposit taker which &#8211;<\/p>\n<p>(a)is made by an individual (in this section referred to as the &#8216;declarer&#8217;) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer,<\/p>\n<p>(b)is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners,<\/p>\n<p>(c)declares that at the time when the declaration is made &#8211;<\/p>\n<p>(i)the individual beneficially entitled to the interest in relation to the deposit or his or her spouse or civil partner has attained the age of 65 years, and<\/p>\n<p>(ii)the total income of the individual for the year of assessment in which the declaration is made will not exceed the specified amount (within the meaning of section 188(2)) applicable to that individual,<\/p>\n<p>(d)contains as respects the individual, or as the case may be each of the individuals, mentioned in paragraph (c) &#8211;<\/p>\n<p>(i)the name and address of the individual,<\/p>\n<p>(ii)the date of birth of the individual who has attained the age of 65 years, and<\/p>\n<p>(iii)the individual&#8217;s PPS Number (within the meaning of section 891B),<\/p>\n<p>(e)contains an undertaking by the declarer that if the individual or, as the case may be, any of the individuals mentioned in paragraph (d) no longer satisfies the conditions set out in paragraph (a) of section 256(1A) the declarer will notify the relevant deposit taker accordingly, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.<\/p>\n<p>(2)Section 263(2) applies as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.<\/p>\n<p>263B.<\/p>\n<h4>Declarations to the Revenue Commissioners relating to deposits of certain persons.<\/h4>\n<p>The declaration referred to in section 256(1B) is a declaration in writing to the Revenue Commissioners which &#8211;<\/p>\n<p>(a)is made by the person (in this section referred to as the &#8216;declarer&#8217;) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer,<\/p>\n<p>(b)is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners,<\/p>\n<p>(c)declares that at the time when the declaration is made &#8211;<\/p>\n<p>(i)<\/p>\n<p>(I)the individual beneficially entitled to the interest in relation to the deposit or his or her spouse or civil partner is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself, and<\/p>\n<p>(II)the individual beneficially entitled to any interest paid in respect of that deposit in any year of assessment or his or her spouse or civil partner, is a relevant person (within the meaning of section 267) and the individual would, in accordance with section 267(3), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest,<\/p>\n<p>or<\/p>\n<p>(ii)<\/p>\n<p>(I)the person entitled to the interest in relation to the deposit is exempt from income tax by virtue of section 189A(2), and<\/p>\n<p>(II)the person entitled to any interest paid in respect of that deposit in any year of assessment is a person referred to in section 189A(2) and would, in accordance with section 267(2), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest,<\/p>\n<p>(d)contains as respects the person, or as the case may be, each of the persons mentioned in paragraph (c) &#8211;<\/p>\n<p>(i)the name and address of the person,<\/p>\n<p>(ii)the person&#8217;s PPS Number (within the meaning of section 891B) or where the person is not an individual, the person&#8217;s tax reference number (within the meaning of paragraphs (b) and (c) of the definition of &#8216;tax reference number&#8217; in section 885),<\/p>\n<p>(iii)the name and address of the deposit taker (including the name and address of the branch of the deposit taker, if any) who holds the deposit in respect of which the declaration is made, and<\/p>\n<p>(iv)the account number or membership number, as the case may be, of the deposit in respect of which the declaration is made,<\/p>\n<p>(e)contains an undertaking by the declarer that if the person or, as the case may be, any of the persons mentioned in paragraph (d) no longer satisfies the conditions set out in paragraph (a) of section 256(1B) the declarer will notify the Revenue Commissioners accordingly, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.<\/p>\n<p>263C.<\/p>\n<h4>Notifications by the Revenue Commissioners relating to deposits of certain persons.<\/h4>\n<p>(1)The notification referred to in section 256(1B) is a notification &#8211;<\/p>\n<p>(a)in writing by the Revenue Commissioners to a relevant deposit taker confirming that the account identified in the notification is to be treated as not being a relevant deposit unless and until the notification is cancelled in accordance with subsection (2),<\/p>\n<p>(b)which contains as respects the person beneficially entitled to, or the person (being one or more than one trustee) referred to in section 189A(2) entitled to, the interest in relation to the deposit mentioned in paragraph (a) &#8211;<\/p>\n<p>(i)the name and address of the person,<\/p>\n<p>(ii)the person&#8217;s PPS Number (within the meaning of section 891B) or, where the person is not an individual, the person&#8217;s tax reference number (within the meaning of paragraphs (b) and (c) of the definition of &#8216;tax reference number&#8217; in section 885), and<\/p>\n<p>(iii)the account number of the deposit,<\/p>\n<p>and<\/p>\n<p>(c)which contains such other information as the Revenue Commissioners may reasonably decide for the purposes of this Chapter.<\/p>\n<p>(2)The Revenue Commissioners may at any time cancel the notification and give notice in writing to that effect to both the relevant deposit taker and the person or persons mentioned in subsection (1)(b). Where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this section applies from that time.<\/p>\n<p>263D.<\/p>\n<h4>Declarations to the Revenue Commissioners in relation to relevant amounts.<\/h4>\n<p>The declaration referred to in section 256(1C) is a declaration in writing to the Revenue Commissioners which &#8211;<\/p>\n<p>(a)is made by the person (in this section referred to as the &#8216;declarer&#8217;) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer,<\/p>\n<p>(b)is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners,<\/p>\n<p>(c)declares that at the time the declaration is made that the deposit is solely in respect of a relevant amount,<\/p>\n<p>(d)contains as respects the person &#8211;<\/p>\n<p>(i)the name and address of the person,<\/p>\n<p>(ii)the person&#8217;s PPS Number (within the meaning of section 891B),<\/p>\n<p>(iii)the name and address of the deposit taker (including the name and address of the branch of the deposit taker, if any) who holds the deposit in respect of which the declaration is made, and<\/p>\n<p>(iv)the account number or membership number, as the case may be, of the deposit in respect of which the declaration is made,<\/p>\n<p>and<\/p>\n<p>(e)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.<\/p>\n<p>263E.<\/p>\n<h4>Notification by the Revenue Commissioners relating to deposits of relevant amounts.<\/h4>\n<p>(1)The notification referred to in section 256(1C) is a notification &#8211;<\/p>\n<p>(a)in writing by the Revenue Commissioners to a relevant deposit taker confirming that the account identified in the notification is to be treated as not being a relevant deposit unless and until the notification is cancelled in accordance with subsection (2),<\/p>\n<p>(b)which contains as respects the person beneficially entitled to the interest in relation to the deposit mentioned in paragraph (a) &#8211;<\/p>\n<p>(i)the name and address of the person,<\/p>\n<p>(ii)the person&#8217;s PPS Number (within the meaning of section 891B), and<\/p>\n<p>(iii)the account number of the deposit, and<\/p>\n<p>(c)which contains such information as the Revenue Commissioners may reasonably decide for the purposes of this Chapter.<\/p>\n<p>(2)The Revenue Commissioners may at any time cancel the notification and give notice in writing to that effect to the relevant deposit taker and the person mentioned in subsection (1)(b). Where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this section applies from that time.<\/p>\n<p>263F.<\/p>\n<h4>Declarations relating to deposits made by a PEPP provider held for a PEPP.<\/h4>\n<p>(1)The declaration referred to in paragraph (l) of the definition of &#8216;relevant deposit&#8217; in section 256(1) is a declaration in writing to a relevant deposit taker which &#8211;<\/p>\n<p>(a)is made by a PEPP provider (in this section referred to as &#8216;the declarer&#8217;) in respect of a deposit that is an asset of a PEPP,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed by the Revenue Commissioners,<\/p>\n<p>(d)declares that, at the time when the declaration is made, the deposit in respect of which the declaration is made &#8211;<\/p>\n<p>(i)is an asset of a PEPP, and<\/p>\n<p>(ii)is managed by the declarer for the PEPP who is beneficially entitled to the deposit,<\/p>\n<p>(e)contains the name, address and tax reference number of the PEPP referred to in paragraph (d),<\/p>\n<p>(f)contains an undertaking by the declarer that if the deposit ceases to be an asset of the PEPP, including a case where the deposit is transferred to another PEPP, the declarer will notify the relevant deposit taker accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purpose of this Chapter.<\/p>\n<p>(2)A relevant deposit taker shall &#8211;<\/p>\n<p>(a)keep and retain for the longer of the following periods:<\/p>\n<p>(i)a period of 6 years, and<\/p>\n<p>(ii)a period which, in relation to the deposit in respect of which the declaration is made, ends not earlier than 3 years after the date on which the deposit is repaid or, as the case may be, becomes a relevant deposit,<\/p>\n<p>and<\/p>\n<p>(b)on being so required by notice given to it in writing by an inspector, make available to the inspector, within the time specified in the notice,<\/p>\n<p>all declarations of the kind mentioned in subsection (1) which have been made in respect of deposits held by the relevant deposit taker.<\/p>\n<p>(3)The inspector may examine or take extracts from or copies of any declarations made available to him or her under paragraph (a).<\/p>\n<p>(4)In this section &#8211;<\/p>\n<p>&#8216;PEPP&#8217; has the same meaning as it has in Chapter 2D of Part 30;<\/p>\n<p>&#8216;PEPP provider&#8217; has the same meaning as it has in Chapter 2D of Part 30.<\/p>\n<p>264.<\/p>\n<h4>Conditions and declarations relating to special savings accounts.<\/h4>\n<p>&nbsp;<\/p>\n<p>(1)The following are the conditions referred to in paragraph (a) of the definition of &#8220;special savings account&#8221; in section 256(1):<\/p>\n<p>(a)the account shall be designated by the relevant deposit taker as a special savings account;<\/p>\n<p>(b)the account shall not be denominated in a foreign currency;<\/p>\n<p>(c)the account shall not be connected with any other account held by the account holder or any other person; and for this purpose an account shall be connected with another account if &#8211;<\/p>\n<p>(i)<\/p>\n<p>(I)either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and<\/p>\n<p>(II)the terms on which either account was opened would have been significantly less favourable to the account holder if the other account had not been opened,<\/p>\n<p>or<\/p>\n<p>(ii)the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;<\/p>\n<p>(d)no withdrawal of money shall be made from the account within the period of 3 months commencing on the date on which it is opened;<\/p>\n<p>(e)the terms under which the account is opened shall require the individual to give a minimum notice of 30 days to the relevant deposit taker in relation to the withdrawal of any money from the account;<\/p>\n<p>(f)all moneys held in the account shall be subject to the same terms;<\/p>\n<p>(g)there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of interest which is paid or payable, in respect of the relevant deposit or relevant deposits held in the account, in or in respect of any period which is more than 24 months;<\/p>\n<p>(h)interest paid or payable in respect of the relevant deposit or relevant deposits held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;<\/p>\n<p>(i)the relevant deposit or the aggregate of the relevant deposits held in the account, including any relevant interest added to that deposit or those deposits, shall not at any time exceed \u20ac63,500;<\/p>\n<p>(j)the account shall not be opened by or held in the name of an individual who is not of full age;<\/p>\n<p>(k)the account shall be opened by and held in the name of the individual beneficially entitled to the relevant interest payable in respect of the relevant deposit or relevant deposits held in the account;<\/p>\n<p>(l)except in the case of an account opened and held jointly only by 2 individuals who are married to each other or who are civil partners of each other, the account shall not be a joint account;<\/p>\n<p>(m)except in the case of an account opened and held jointly only by 2 individuals who are married to each other or who are civil partners of each other, either the same or any other relevant deposit taker shall not simultaneously hold another special savings account opened and held by an individual;<\/p>\n<p>(n)in the case of an account opened and held jointly only by 2 individuals who are married to each other or who are civil partners of each other, they shall not simultaneously hold (either with the same or any other relevant deposit taker) any other special savings account either individually or jointly other than one other such account opened and held jointly by them.<\/p>\n<p>(2)The declaration referred to in paragraph (b) of the definition of &#8220;special savings account&#8221; in section 256(1) shall be a declaration in writing to a relevant deposit taker which &#8211;<\/p>\n<p>(a)is made by the individual (in this section referred to as &#8220;the declarer&#8221;) to whom any interest payable in respect of the relevant deposit or relevant deposits held in the account in respect of which the declaration is made is payable by the relevant deposit taker, and is signed by the declarer,<\/p>\n<p>(b)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(c)declares that at the time when the declaration is made the conditions referred to in paragraphs (j) to (n) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,<\/p>\n<p>(d)contains the full name and address of the individual beneficially entitled to the interest payable in respect of the relevant deposit or relevant deposits held in the account in respect of which the declaration is made,<\/p>\n<p>(e)contains an undertaking by the declarer that, if the conditions referred to in paragraphs (j) to (n) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the relevant deposit taker accordingly, and<\/p>\n<p>(f)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.<\/p>\n<p>(3)Subsection (2) of section 263 shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.<\/p>\n<p>(4)Section 261 shall apply in relation to any relevant interest paid in respect of any relevant deposit held in a special savings account as if the following paragraph were substituted for paragraph (c) of that section:<\/p>\n<p>&#8220;(c)the amount of any payment of relevant interest (being relevant interest paid in respect of any relevant deposit held in a special savings account) shall not, except for the purposes of a claim to repayment under section 267(3) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts,&#8221;.<\/p>\n<p>(5)An account shall cease to be a special savings account if any of the conditions mentioned in subsection (1) cease to be satisfied, and subsection (4) shall not apply to any relevant interest in respect of any relevant deposit held in the account which is paid on or after the date on which the account ceases to be a special savings account.<\/p>\n<p>264A.<\/p>\n<h4>Conditions and declarations relating to special term accounts.<\/h4>\n<p>(1)The following are the conditions referred to in subparagraph (i) of the definition of &#8216;special term account&#8217; in section 256(1):<\/p>\n<p>(a)the account shall be opened and designated by the relevant deposit taker as a medium term account or, as the case may be, a long term account;<\/p>\n<p>(b)the account shall not be denominated in a foreign currency;<\/p>\n<p>(c)the account shall not be connected with any other account held by the account holder or any other person; and for this purpose an account shall be connected with another account if &#8211;<\/p>\n<p>(i)<\/p>\n<p>(I)either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and<\/p>\n<p>(II)the terms on which either account was opened would have been significantly less favourable to the account holder if the other account had not been opened,<\/p>\n<p>or<\/p>\n<p>(ii)the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;<\/p>\n<p>(d)all relevant deposits held in the account shall be subject to the same terms;<\/p>\n<p>(e)there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of interest which is paid or payable, in respect of the relevant deposit or relevant deposits held in the account, in or in respect of any period which is more than 12 months;<\/p>\n<p>(f)interest paid or payable in respect of the relevant deposit or relevant deposits held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;<\/p>\n<p>(g)the account shall not be opened by or held in the name of an individual who is under 16 years of age;<\/p>\n<p>(h)the account shall be opened by and held in the name of the individual beneficially entitled to the relevant interest payable in respect of the relevant deposit or relevant deposits held in the account;<\/p>\n<p>(i)the account may be held jointly by not more than 2 individuals;<\/p>\n<p>(j)an individual shall not simultaneously hold whether solely or jointly &#8211;<\/p>\n<p>(I)a special term share account, or<\/p>\n<p>(II)subject to paragraph (k), another special term account;<\/p>\n<p>(k)where the account is held jointly by individuals who are married to each other or who are civil partners of each other they may simultaneously hold one other such account jointly;<\/p>\n<p>(l)subject to paragraphs (m) and (n), the amount of a deposit or the aggregate amount of deposits which may be made to an account in any one month shall not exceed \u20ac635;<\/p>\n<p>(m)at the time an individual opens an account with a relevant deposit taker, a deposit consisting of all or part of the relevant deposits of the individual which are at that time held by the same relevant deposit taker, may be transferred to the account;<\/p>\n<p>(n)otherwise than by way of a transfer under paragraph (m), a deposit of not more than \u20ac7,620 may be made by an individual once and only once to an account during the period in which the account is a special term account;<\/p>\n<p>(o)any interest credited to the account by the relevant deposit taker shall not be treated as a deposit for the purposes of paragraph (l) or (p), but such interest may not be withdrawn from the account, otherwise than in accordance with paragraph (q), unless the withdrawal is made within the period of 12 months from the date it was so credited;<\/p>\n<p>(p)subject to paragraph (q), a deposit may not be withdrawn from an account held by an individual within &#8211;<\/p>\n<p>(i)3 years from the date the deposit was made, in the case of a medium term account, and<\/p>\n<p>(ii)5 years from the date the deposit was made, in the case of a long term account,<\/p>\n<p>otherwise than on the death of the individual or, where the account is an account held jointly by 2 individuals, on the death of one of them;<\/p>\n<p>(q)one and only one withdrawal may be made from an account by an individual who is 60 years of age or over on the date of the withdrawal, provided that the account was opened when the individual was under that age.<\/p>\n<p>(2)The declaration referred to in subparagraph (ii) of the definition of &#8216;special term account&#8217; in section 256(1) shall be a declaration in writing to a relevant deposit taker which &#8211;<\/p>\n<p>(a)is made by the individual (in this subsection referred to as &#8216;the declarer&#8217;) who holds the account in respect of which the declaration is made is payable,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that at the time when the declaration is made the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,<\/p>\n<p>(e)contains the full name and address of the declarer,<\/p>\n<p>(f)contains an undertaking by the declarer that, if the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the relevant deposit taker accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.<\/p>\n<p>(3)Section 263(2) shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.<\/p>\n<p>264B.<\/p>\n<h4>Returns of special term accounts by relevant deposit takers.<\/h4>\n<p>(1)In this section &#8216;appropriate inspector&#8217; means &#8211;<\/p>\n<p>(a)the inspector who has last given notice in writing to the relevant deposit taker that he or she is the inspector to whom the relevant deposit taker is required to deliver the return referred to in subsection (2), or<\/p>\n<p>(b)where there is no such inspector as is referred to in paragraph (a), the inspector of returns.<\/p>\n<p>(2)On or before 31 March in each year of assessment, every relevant deposit taker shall prepare and deliver to the appropriate inspector a return, in such form as may be prescribed or authorised by the Revenue Commissioners specifying &#8211;<\/p>\n<p>(a)the name and address of the holder or holders, as the case may be, of each special term account which was opened during the previous year of assessment,<\/p>\n<p>(b)whether such account is a medium term account or a long term account, and<\/p>\n<p>(c)the date of opening of such account.<\/p>\n<p>(3)Sections 1052 and 1054 shall apply to a failure by a relevant deposit taker to deliver a return required by subsection (2) and to each and every such failure, as they apply to a failure to deliver a return referred to in section 1052.<\/p>\n<p>265.<\/p>\n<h4>Deposits of companies and pensions schemes.<\/h4>\n<p>Where a return is required to be made by a relevant deposit taker under section 891 in respect of interest on a deposit which is a deposit of a kind referred to in paragraph (f) of the definition of &#8216;relevant deposit&#8217; in section 256, that return shall, in addition to the matters which shall be included on the return by virtue of section 891, include the tax reference number (within the meaning of section 885) of the person beneficially entitled to the interest and where, in the case of a pension scheme, there is no such number, with the number assigned by the Revenue Commissioners to the employer to whom the pension scheme relates.<\/p>\n<p>265A.<\/p>\n<h4>Deposits of certain persons.<\/h4>\n<p>Where a return is required to be made by a relevant deposit taker under section 891 in respect of interest on a deposit which is a deposit of a kind referred to in subsection (1A) or (1B) of section 256, then that return shall, in addition to the matters which shall be included on the return by virtue of section 891, include &#8211;<\/p>\n<p>(a)the PPS Number (within the meaning of section 891B) of the person, or<\/p>\n<p>(b)where the person is not an individual, the person&#8217;s tax reference number (within the meaning of paragraphs (b) and (c) of section 885).<\/p>\n<p>266.<\/p>\n<h4>Deposits of charities.<\/h4>\n<p>Where a return is required to be made by a relevant deposit taker under section 891 in respect of interest on a deposit which is a deposit of a kind referred to in paragraph (h) of the definition of &#8216;relevant deposit&#8217; in section 256, that return shall, in addition to the matters which shall be included on that return by virtue of section 891, include the reference number assigned to that person by the Revenue Commissioners in recognition of that person&#8217;s entitlement to exemption from tax under section 207 and known as the charity (CHY) number.<\/p>\n<p>266A.<\/p>\n<h4>Repayments of appropriate tax to first-time purchasers.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;completion value&#8217;, in relation to a dwelling, means the price which the unencumbered fee simple of the dwelling might reasonably be expected to fetch on a sale in the open market were that dwelling to be sold on the relevant completion date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the dwelling and with the benefit of any easement necessary to afford the same access to the dwelling as would have existed prior to that sale;<\/p>\n<p>&#8216;first-time purchaser&#8217; means a person, being an individual who, at the time of a relevant purchase or on the relevant completion date, as the case may be, has not, either individually or jointly with any other person or persons, previously purchased or previously built directly or indirectly on his or her own behalf any other dwelling;<\/p>\n<p>&#8216;relevant completion&#8217; means the completion of the construction of a new dwelling, on or after 14 October 2014 and on or before 31 December 2017, to a standard where it is suitable for immediate occupation as a dwelling and the dwelling &#8211;<\/p>\n<p>(a)has been built directly or indirectly &#8211;<\/p>\n<p>(i)on his or her own behalf by a first-time purchaser only, for occupation as his or her place of residence, or<\/p>\n<p>(ii)on their own behalf by more than one person, where each such person is a first-time purchaser only, for occupation as their place of residence,<\/p>\n<p>and<\/p>\n<p>(b)is constructed on property conveyed or transferred, on or before 31 December 2017, into the name or names of the first-time purchaser or first-time purchasers only, as the case may be;<\/p>\n<p>&#8216;relevant completion date&#8217;, in relation to a relevant completion, means the date on which the dwelling becomes suitable for immediate occupation as a dwelling;<\/p>\n<p>&#8216;relevant purchase&#8217; means the conveyance or transfer of a dwelling on or after 14 October 2014 and on or before 31 December 2017 &#8211;<\/p>\n<p>(a)into the name of a first-time purchaser only, for occupation as his or her place of residence, or<\/p>\n<p>(b)into the names of more than one person, where each such person is a first-time purchaser only, for occupation as their place of residence;<\/p>\n<p>&#8216;relevant savings&#8217; means &#8211;<\/p>\n<p>(a)in the case of a relevant purchase, so much of the aggregate amount at any time of any relevant deposits held in the name of a first-time purchaser, individually or jointly with another first-time purchaser only, as does not exceed 20 per cent of the amount of the consideration paid in respect of the relevant purchase by the first-time purchaser, or<\/p>\n<p>(b)in the case of a relevant completion, so much of the aggregate amount at any time of any relevant deposits held in the name of a first-time purchaser, individually or jointly with another first-time purchaser only, as does not exceed 20 per cent of the completion value of the dwelling;<\/p>\n<p>&#8216;relevant savings interest&#8217; means relevant interest paid &#8211;<\/p>\n<p>(a)in the case of a relevant purchase, at any time during the period of 48 months ending on the date of the relevant purchase by a first- time purchaser, to the first-time purchaser in respect of relevant savings, or<\/p>\n<p>(b)in the case of a relevant completion, at any time during the period of 48 months ending on the relevant completion date, to the first-time purchaser in respect of relevant savings.<\/p>\n<p>(2)Notwithstanding section 261(b), appropriate tax which &#8211;<\/p>\n<p>(a)has been deducted from relevant savings interest paid to a first-time purchaser, and<\/p>\n<p>(b)would not otherwise fall to be repaid under this section or any other provision of the Tax Acts,<\/p>\n<p>shall be repaid to the first-time purchaser on the making of a claim by that first-time purchaser to the inspector in that behalf.<\/p>\n<p>(3)A claimant under section 477C to, or in respect of, whom an appropriated payment is made under that section shall not be entitled to relief under this section in respect of the same dwelling.<\/p>\n<p>267.<\/p>\n<h4>Repayment of appropriate tax in certain cases.<\/h4>\n<p>(1)In this section, &#8216;relevant person&#8217; means an individual, or his or her spouse or civil partner, who &#8211;<\/p>\n<p>(a)at some stage during the relevant year, was of the age of 65 years or over, or<\/p>\n<p>(b)throughout the relevant year, or from some time during the relevant year, as the case may be, was or became permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself.<\/p>\n<p>(2)Notwithstanding section 261(b), repayment of appropriate tax in respect of any relevant interest shall be made to a person entitled to exemption in respect of that interest &#8211;<\/p>\n<p>(a)from income tax under Schedule D by virtue of section 189A(2) or section 207(1)(b), or<\/p>\n<p>(b)from corporation tax by virtue of section 207(1)(b) as it applies for the purposes of corporation tax by virtue of section 76(6).<\/p>\n<p>(3)Where in any year of assessment (in this subsection referred to as &#8220;the relevant year&#8221;) the total income of a relevant person includes any relevant interest or would, but for the provisions of section 189(2), section 189A(4), section 192(2) or section 205A(2) have included relevant interest, and apart from section 261(b) the relevant person would be entitled to repayment of the whole or any part of the appropriate tax deducted from that relevant interest, then, notwithstanding section 261(b), the repayment to which the relevant person would be so entitled may be made to the relevant person on the making by the relevant person to the inspector, not earlier than the end of the relevant year, of a claim in that behalf.<\/p>\n<p>Chapter 5<\/p>\n<h4>Dividend Payments by Credit Unions (ss. 267A-267F)<\/h4>\n<p>267A.<\/p>\n<p>Interpretation (Chapter 5).<\/p>\n<p>(1)In this Chapter &#8211;<\/p>\n<p>&#8220;appropriate tax&#8221; has the same meaning as in section 256(1);<\/p>\n<p>&#8220;dividend&#8221; means a dividend on shares declared by a credit union at an annual general meeting of that credit union;<\/p>\n<p>&#8220;long term share account&#8221; means an account that is opened before 16 October 2013 by a member (being an individual) with a credit union on terms under which the member has agreed that each share subscribed for by the member to be held in the account is to be held in the account for a period of not less than 5 years;<\/p>\n<p>&#8220;medium term share account&#8221; means an account that is opened before 16 October 2013 by a member (being an individual) with a credit union on terms under which the member has agreed that each share subscribed for by the member to be held in the account is to be held in the account for a period of not less than 3 years;<\/p>\n<p>&#8220;regular share account&#8221; means an account, other than a special share account or a special term share account, opened by a member (being an individual) with a credit union;<\/p>\n<p>&#8220;relevant deposit&#8221; has the same meaning as in section 256(1);<\/p>\n<p>&#8220;relevant deposit taker&#8221; has the same meaning as in section 256(1);<\/p>\n<p>&#8220;relevant interest&#8221; has the same meaning as in section 256(1);<\/p>\n<p>&#8220;savings&#8221; includes shares and deposits;<\/p>\n<p>&#8220;share&#8221; has the same meaning as in section 2(1) of the Credit Union Act, 1997;<\/p>\n<p>&#8220;special share account&#8221; means an account in which shares subscribed for by a member are held by a credit union on terms under which the member has agreed with the credit union that for the purposes of Chapter 4 of this Part &#8211;<br \/>\n(a)the value of the shares held in the account at any time is to be treated as an amount of a relevant deposit held by the credit union at that time, and<br \/>\n(b)the value of any dividend paid on those shares at any time is to be treated as an amount of relevant interest paid in respect of such relevant deposit by the credit union at that time;<\/p>\n<p>&#8220;special term account&#8221; has the same meaning as in section 256(1);<\/p>\n<p>&#8220;special term share account&#8221; means &#8211;<br \/>\n(a)a medium term share account, or<br \/>\n(b)a long term share account,<br \/>\nbeing an account in which shares subscribed for by a member are held by a credit union and in respect of which &#8211;<br \/>\n(i)the conditions specified in section 267D(1) are satisfied, and<br \/>\n(ii)a declaration of the kind mentioned in section 267D(2) has been made to the credit union.<\/p>\n<p>(2)For the purposes of this Chapter the amount of any dividend credited to a member&#8217;s account shall be treated as if it were a dividend paid, and references in this Chapter to any dividend paid shall be construed accordingly.<\/p>\n<p>267AA.<\/p>\n<h4>Taxation of dividends on regular share accounts.<\/h4>\n<p>A credit union shall treat &#8211;<\/p>\n<p>(a)the value of shares held in a regular share account at any time, as an amount of a relevant deposit held by it at that time, and<\/p>\n<p>(b)the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by the credit union as they apply to relevant interest paid by a relevant deposit taker.<\/p>\n<p>267B.<\/p>\n<h4>Election to open a special share account or a special term share account.<\/h4>\n<p>(1)A person, who is a member or is about to become a member of a credit union, may either or both &#8211;<\/p>\n<p>(a)make an election in writing to the credit union to open an account which is a special share account, and<\/p>\n<p>(b)where the person is an individual, make an election in writing to the credit union to open either a medium term share account or a long term share account.<\/p>\n<p>(2)Where an election is made in accordance with subsection (1)(a), the credit union shall designate the account as a special share account and shall treat &#8211;<\/p>\n<p>(a)the value of the shares held in the account at any time, as an amount of a relevant deposit held by it at that time, and<\/p>\n<p>(b)the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by a credit union as they apply to relevant interest paid by a relevant deposit taker.<\/p>\n<p>(3)Where an election is made in accordance with subsection (1)(b), the credit union shall treat &#8211;<\/p>\n<p>(a)the value of the shares held in the account at any time, as an amount of a relevant deposit held by it at that time, and<\/p>\n<p>(b)subject to section 267C, the value of any dividend paid on those shares at any time, as an amount of relevant interest paid at that time in respect of such relevant deposit and the provisions of Chapter 4 of this Part shall apply to such relevant interest treated as paid by the credit union as they apply to relevant interest paid by a relevant deposit taker.<\/p>\n<p>267C.<\/p>\n<h4>Taxation of dividends on special term share accounts.<\/h4>\n<p>(1)The value of the dividend paid in a year of assessment on shares held in a medium term share account shall &#8211;<\/p>\n<p>(a)be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds \u20ac480, and<\/p>\n<p>(b)as respects the first \u20ac480 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.<\/p>\n<p>(2)The value of the dividend paid in a year of assessment on shares held in a long term share account shall &#8211;<\/p>\n<p>(a)be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds \u20ac635, and<\/p>\n<p>(b)as respects the first \u20ac635 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.<\/p>\n<p>(3)Where an account is opened by a member as a medium term share account, the member may subsequently make an election in writing to the credit union to have the account converted to a long term share account.<\/p>\n<p>(4)Where an election is made in accordance with subsection (3), the value of the dividend paid on shares in a year of assessment which commences on or after the date the election is made shall &#8211;<\/p>\n<p>(a)be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds \u20ac635, and<\/p>\n<p>(b)as respects the first \u20ac635 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.<\/p>\n<p>(5)An account shall cease to be a special term share account if any of the conditions specified in subsection (1) of section 267D cease to be satisfied and where that occurs &#8211;<\/p>\n<p>(a)the account shall be treated as a special share account from the time of the occurrence, and<\/p>\n<p>(b)the value of all dividends (in this paragraph referred to as &#8216;past dividends&#8217;) paid prior to the occurrence, on shares held in the account, shall be treated by the credit union as an amount of relevant interest to the extent that the value of such dividends has not already been treated as an amount of relevant interest, and &#8211;<\/p>\n<p>(i)the provisions of section 257(1) shall apply as if the payment of past dividends was being made on the date of the occurrence, and<\/p>\n<p>(ii)where on that date the past dividends have already been withdrawn from the account &#8211;<\/p>\n<p>(I)the credit union shall deduct from the value of the shares in the account on that date, an amount equal to the amount of the appropriate tax which would have been deducted from the past dividends under subparagraph (i), but for the withdrawal, and such amount shall be treated as appropriate tax, and<\/p>\n<p>(II)the provisions of paragraphs (b) and (c) of section 257(1) shall apply to such deduction as they apply to a deduction from relevant interest.<\/p>\n<p>(6)An account shall cease to be a special term share account on a date which is &#8211;<\/p>\n<p>(a)3 years after the day on which the account was opened if the account is a medium term share account, or<\/p>\n<p>(b)5 years after the day on which the account was opened if the account is a long term share account, including an account which was opened as a medium term share account but which was subsequently converted into a long term share account.<\/p>\n<p>267D.<\/p>\n<h4>Conditions and declarations relating to special term share accounts.<\/h4>\n<p>(1)The following are the conditions referred to in subparagraph (i) of the definition of &#8216;special term share account&#8217; in section 267A(1):<\/p>\n<p>(a)the account shall be opened and designated by the credit union as a medium term share account or, as the case may be, a long term share account;<\/p>\n<p>(b)the account shall not be denominated in a foreign currency;<\/p>\n<p>(c)the account shall not be connected with any other share account or deposit account held by the member or any other person; and for this purpose an account shall be connected with another account if &#8211;<\/p>\n<p>(i)<\/p>\n<p>(I)either account was opened with reference to the other account, or with a view to enabling the other account to be opened on particular terms, or with a view to facilitating the opening of the other account on particular terms, and<\/p>\n<p>(II)the terms on which either account was opened would have been significantly less favourable to the member if the other account had not been opened,<\/p>\n<p>or<\/p>\n<p>(ii)the terms on which either account is operated are altered or affected in any way whatever because of the existence of the other account;<\/p>\n<p>(d)all shares held in the account shall be subject to the same terms;<\/p>\n<p>(e)there shall not be any agreement, arrangement or understanding in existence, whether express or implied, which influences or determines, or could influence or determine, the rate (other than an unspecified and variable rate) of dividend which is paid or payable, in respect of the share or shares held in the account, in or in respect of any period which is more than 12 months;<\/p>\n<p>(f)dividends paid or payable in respect of the share or shares held in the account shall not directly or indirectly be linked to or determined by any change in the price or value of any shares, stocks, debentures or securities listed on a stock exchange or dealt in on an unlisted securities market;<\/p>\n<p>(g)the account shall not be opened by or held in the name of a member who is under 16 years of age;<\/p>\n<p>(h)the account shall be opened by and held in the name of the member beneficially entitled to the dividend payable in respect of the share or shares held in the account;<\/p>\n<p>(i)an account may be held jointly by not more than 2 individual members;<\/p>\n<p>(j)a member shall not simultaneously hold whether solely or jointly &#8211;<\/p>\n<p>(I)a special term account, or<\/p>\n<p>(II)subject to paragraph (k), another special term share account;<\/p>\n<p>(k)where the account is held jointly by individuals who are married to each other or who are civil partners of each other they may simultaneously hold one other such account jointly;<\/p>\n<p>(l)subject to paragraph (m) and (n) the amount of a subscription or aggregate amount of subscriptions for shares which may be added to an account in any one month shall not exceed \u20ac635;<\/p>\n<p>(m)at the time a member opens an account with a credit union, a single subscription for shares consisting of all or part of the savings of the member which are already held by the same credit union, may be transferred to the account;<\/p>\n<p>(n)otherwise than by way of a transfer under paragraph (m), shares at a cost of not more than \u20ac7,620 may be added by a member once and only once to an account during the period in which the account is a special term share account;<\/p>\n<p>(o)any disbursement of the surplus funds of a credit union, in the form of dividends or rebate of loan interest, which is added to the account shall not be treated as a subscription for shares for the purposes of paragraph (l) or (p), but such dividend or rebate of loan interest may not be withdrawn from the account, otherwise than in accordance with paragraph (q), unless the withdrawal is made within the period of 12 months from the date it was so added;<\/p>\n<p>(p)subject to paragraph (q), a share may not be withdrawn from an account held by a member within &#8211;<\/p>\n<p>(i)3 years from the date the share was subscribed for, in the case of a medium term share account, and<\/p>\n<p>(ii)5 years from the date the share was subscribed for, in the case of a long term share account,<\/p>\n<p>otherwise than on the death of the member or, where the account is an account held jointly by 2 members, on the death of one of them;<\/p>\n<p>(q)one and only one withdrawal may be made from an account by a member who is 60 years of age or over on the date of the withdrawal, provided that the account was opened when the member was under that age;<\/p>\n<p>(r)a transfer of shares from an account by a credit union to reduce a balance outstanding on a loan from the credit union to a member shall not be treated as a withdrawal from the account for the purposes of paragraph (p) where &#8211;<\/p>\n<p>(i)such shares were pledged as security for the loan at the time the loan was granted,<\/p>\n<p>(ii)a default (whether of interest or otherwise) in the terms of the repayment of the loan of not less than 6 months has occurred, and<\/p>\n<p>(iii)the credit union has followed its standard procedures in seeking to recover the loan.<\/p>\n<p>(2)The declaration referred to in subparagraph (ii) of the definition of &#8216;special term share account&#8217; in section 267A(1) shall be a declaration in writing to the credit union which &#8211;<\/p>\n<p>(a)is made by the member (in this subsection referred to as &#8216;the declarer&#8217;) who holds the account in respect of which the declaration is made,<\/p>\n<p>(b)is signed by the declarer,<\/p>\n<p>(c)is made in such form as may be prescribed or authorised by the Revenue Commissioners,<\/p>\n<p>(d)declares that at the time when the declaration is made the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) are satisfied in relation to the account in respect of which the declaration is made,<\/p>\n<p>(e)contains the full name and address of the declarer,<\/p>\n<p>(f)contains an undertaking by the declarer that, if the conditions referred to in paragraphs (g), (h), (j) and (k) of subsection (1) cease to be satisfied in respect of the account in respect of which the declaration is made, the declarer will notify the credit union accordingly, and<\/p>\n<p>(g)contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.<\/p>\n<p>(3)Section 263(2) shall apply as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.<\/p>\n<p>267E.<\/p>\n<h4>Returns of special term share accounts by credit unions.<\/h4>\n<p>(1)In this section &#8216;appropriate inspector&#8217; means &#8211;<\/p>\n<p>(a)the inspector who has last given notice in writing to the credit union that he or she is the inspector to whom the credit union is required to deliver the return required under subsection (2), or<\/p>\n<p>(b)where there is no such inspector as is referred to in paragraph (a), the inspector of returns.<\/p>\n<p>(2)On or before 31 March in each year of assessment, every credit union shall prepare and deliver to the appropriate inspector a return, in such form as may be prescribed or authorised by the Revenue Commissioners specifying &#8211;<\/p>\n<p>(a)the name and address of the holder or holders, as the case may be, of each special term share account which was opened during the previous year of assessment,<\/p>\n<p>(b)whether the account is a medium term share account or a long term share account, and<\/p>\n<p>(c)the date of opening of such account.<\/p>\n<p>(3)Sections 1052 and 1054 shall apply to a failure by a credit union to deliver a return required by subsection (2) and to each and every such failure, as they apply to a failure to deliver a return referred to in section 1052.<\/p>\n<p>267F.<\/p>\n<h4>Supplementary provisions (Chapter 5).<\/h4>\n<p>(1)The provisions of section 904A shall apply to a credit union, treated under this Chapter as paying relevant interest, as they apply to a relevant deposit taker paying relevant interest.<\/p>\n<p>(2)[deleted]<\/p>\n<p>(3)Section 261 shall apply in relation to any dividend paid on shares held in a special share account or a special term share account which under section 267B is treated in whole or in part as relevant interest paid in respect of a relevant deposit, as if the following paragraph were substituted for paragraph (c) of that section:<\/p>\n<p>&#8216;(c)the amount of any payment of relevant interest paid in respect of a relevant deposit shall not, except for the purposes of a claim to repayment under section 267(3) in respect of the appropriate tax deducted from such relevant interest, be reckoned in computing total income for the purposes of the Income Tax Acts;&#8217;.<\/p>\n<p>Chapter 6<\/p>\n<p>Implementation of Council Directive 2003\/49\/EC of 3 June 2003 on a common system of taxation applicable to interest and<\/p>\n<h4>Royalty payments made between associated companies of different Member States (ss. 267G-267L)<\/h4>\n<p>267G.<\/p>\n<h4>Interpretation (Chapter 6).<\/h4>\n<p>(1)In this Chapter &#8211;<\/p>\n<p>&#8220;arrangements&#8221; means arrangements having the force of law by virtue of section 826(1);<\/p>\n<p>&#8220;bilateral agreement&#8221; means any arrangements, protocol or other agreement between the Government and the government of another state;<\/p>\n<p>&#8220;permanent establishment&#8221; means a fixed place of business through which the business of a company of a Member State is wholly or partly carried on which place of business is situated in a territory other than that Member State;<\/p>\n<p>&#8220;company&#8221; means a company of a Member State;<\/p>\n<p>&#8220;company of a Member State&#8221; has the meaning assigned to it by Article 3(a) of the Directive;<\/p>\n<p>&#8220;the Directive&#8221; means Council Directive 2003\/49\/EC of 3 June 2003 [OJ No. L157, 26.6.2003, p.49] as amended;<\/p>\n<p>&#8220;interest&#8221; means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor&#8217;s profits, and in particular, income from securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures but does not include penalty charges for late payment;<\/p>\n<p>&#8220;Member State&#8221; means a Member State of the European Communities;<\/p>\n<p>&#8220;royalties&#8221; means payments of any kind as consideration for &#8211;<br \/>\n(a)the use of, or the right to use &#8211;<br \/>\n(i)any copyright of literary, artistic or scientific work, including cinematograph films and software,<br \/>\n(ii)any patent, trade mark, design or model, plan, secret formula or process,<br \/>\n(b)information concerning industrial, commercial or scientific experience;<br \/>\n(c)the use of, or the right to use, industrial, commercial or scientific equipment;;<\/p>\n<p>&#8220;tax&#8221; in relation to a Member State other than the State, means any tax imposed in that Member State which is specified in Article 3(a)(iii) of the Directive.<\/p>\n<p>(2)For the purposes of this Chapter &#8211;<\/p>\n<p>(a)a company shall be treated as an &#8216;associated company&#8217; of another company during an uninterrupted period of at least 2 years throughout which &#8211;<\/p>\n<p>(i)one of them directly controls not less than 25 per cent of the voting power of the other company, or<\/p>\n<p>(ii)in respect of those companies, a third company directly controls not less than 25 per cent of the voting power of each of them,<\/p>\n<p>(b)a permanent establishment of a company in a Member State shall be treated as being the beneficial owner of interest or royalties if &#8211;<\/p>\n<p>(i)the debt-claim, right or asset in respect of which the interest arises, or as the case may be the royalties arise, consists of property or rights used by, or held by or for, the permanent establishment, and<\/p>\n<p>(ii)the interest or royalties are taken into account in computing income of the permanent establishment which is subject to one of the taxes specified in Article 1.5(b) or Article 3(a)(iii) of the Directive,<\/p>\n<p>(c)a word or expression used in this Chapter and in the Directive has, unless the contrary intention appears, the same meaning in this Chapter as in the Directive.<\/p>\n<p>267H.<\/p>\n<h4>Application (Chapter 6).<\/h4>\n<p>(1)Subject to subsection (2), this Chapter shall apply to a payment, being interest or royalties, made &#8211;<\/p>\n<p>(a)by either &#8211;<\/p>\n<p>(i)a company resident in the State, or<\/p>\n<p>(ii)a company not so resident which carries on a trade in the State through a permanent establishment if, in relation to the trade the interest gives, or as the case may be the royalties give, rise to a deduction under section 81 or 97 or relief under Part 8,<\/p>\n<p>(b)to or for the benefit of &#8211;<\/p>\n<p>(i)where subparagraph (ii) does not apply, a company which &#8211;<\/p>\n<p>(I)is the beneficial owner of the interest, or as the case may be the royalties, and<\/p>\n<p>(II)is, by virtue of the law of a Member State other than the State, resident for the purposes of tax in such a Member State,<\/p>\n<p>or<\/p>\n<p>(ii)a permanent establishment &#8211;<\/p>\n<p>(I)which is situated in a Member State (in this subparagraph referred to as the &#8216;first Member State&#8217;) other than the State,<\/p>\n<p>(II)which is treated as the beneficial owner of the interest, or as the case may be the royalties, and<\/p>\n<p>(III)through which a company, which is (by virtue of the law of a Member State other than the State) resident for the purposes of tax in such a Member State, carries on a business in the first Member State,<\/p>\n<p>if the company referred to in paragraph (a) is an associated company of the company referred to in paragraph (b).<\/p>\n<p>(2)This Chapter shall not apply to &#8211;<\/p>\n<p>(a)interest or royalties paid &#8211;<\/p>\n<p>(i)to a company where the debt-claim, right or asset in respect of which the payment is made consists of property or rights used by, or held by or for, a permanent establishment of the company through which the company carries on a trade &#8211;<\/p>\n<p>(I)in the State, or<\/p>\n<p>(II)in a territory which is not a Member State,<\/p>\n<p>or<\/p>\n<p>(ii)by a company for the purposes of a business carried on by it through a permanent establishment in a territory which is not a Member State,<\/p>\n<p>(b)interest on a debt-claim in respect of which there is no provision for repayment of the principal amount or where the repayment is due more than 50 years after the creation of the debt, or<\/p>\n<p>(c)so much of any royalties paid as exceeds the amount which would have been agreed by the payer, and the beneficial owner, of the royalties if they were independent persons acting at arm&#8217;s length.<\/p>\n<p>267I.<\/p>\n<h4>Exemptions from tax and withholding tax.<\/h4>\n<p>(1)Where, apart from this section, section 238, 246(2) or 257 would apply to a payment of interest or royalties to which this Chapter applies, those sections shall not apply to that payment.<\/p>\n<p>(2)A company which, by virtue of the law of a Member State other than the State, is resident for the purposes of tax in that Member State, shall not be chargeable to corporation tax or income tax in respect of interest or royalties to which this Chapter applies except where the interest is, or as the case may be the royalties are, paid to the company in connection with a trade which is carried on in the State by that company through a permanent establishment.<\/p>\n<p>267J.<\/p>\n<h4>Credit for foreign tax.<\/h4>\n<p>(1)Where interest or royalties are received by a company resident in the State from an associated company, credit shall be allowed for any withholding tax charged on the interest or royalties by a Member State pursuant to the derogations duly given from Article 6 of the Directive against corporation tax in respect of such interest and royalties to the extent that credit for such withholding tax would not otherwise be so allowed.<\/p>\n<p>(2)Where by virtue of subsection (1) a company is to be allowed credit for tax payable under the laws of a Member State other than the State, Schedule 24 shall apply for the purposes of that subsection as if that subsection were arrangements providing that the tax so payable shall be allowed as a credit against tax payable in the State.<\/p>\n<p>(3)This section applies without prejudice to a provision of a bilateral agreement.<\/p>\n<p>267K.<\/p>\n<h4>Miscellaneous.<\/h4>\n<p>(1)Sections 267G, 267H, 267I and 267J shall not apply to interest or royalties unless it can be shown that the payment of the interest or royalties was made for bona fide commercial reasons and does not form part of any arrangement or scheme of which the main purpose or one of the main purposes is avoidance of liability to income tax, corporation tax or capital gains tax.<\/p>\n<p>(2)Where a company which &#8211;<\/p>\n<p>(a)is entitled to receive a payment of interest or royalties from any person, and<\/p>\n<p>(b)had received from that person a payment of interest or royalties which was exempt from tax in accordance with the Directive,<\/p>\n<p>ceases to fulfil the requirements specified in the Directive for exemption to apply, the company shall without delay inform that person that it has so ceased.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>267L.<\/p>\n<h4>Application of this Chapter to certain payments made to companies in Switzerland.<\/h4>\n<p>(1)This section applies to a payment, being interest or royalties, made to or for the benefit of &#8211;<\/p>\n<p>(a)where paragraph (b) does not apply, a company which &#8211;<\/p>\n<p>(i)is the beneficial owner of the interest, or as the case may be the royalties,<\/p>\n<p>(ii)is, by virtue of the law of Switzerland, resident for the purposes of tax in Switzerland, and<\/p>\n<p>(iii)is not treated, by virtue of any arrangements made by the government of Switzerland with the government of any territory for the purposes of tax, as resident in any territory which is not &#8211;<\/p>\n<p>(I)a Member State of the European Communities, or<\/p>\n<p>(II)Switzerland,<\/p>\n<p>or<\/p>\n<p>(b)a permanent establishment situated in Switzerland through which a company carries on business in Switzerland, being a permanent establishment which would, in accordance with the Directive, be treated as the beneficial owner of the interest, or as the case may be the royalties.<\/p>\n<p>(2)Sections 267G to 267I shall have effect in relation to a payment to which this section applies as if &#8211;<\/p>\n<p>(a)a reference in those sections to a Member State of the European Communities included a reference to Switzerland,<\/p>\n<p>(b)a reference in those sections to a company of a Member State included a company (being a company which takes one of the forms specified in Article 15 of the Agreement attached to the Council Decision (2004\/911\/EC) of 2 June 2004 on the signing and conclusion of the Agreement between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003\/48\/EC of 3 June 2003 on taxation of savings income in the form of interest payments and the accompanying Memorandum of Understanding ) resident for the purposes of tax in Switzerland, and<\/p>\n<p>(c)a reference in those sections to tax included any tax imposed in Switzerland which corresponds to income tax or corporation tax in the State.<\/p>\n<p>(3)Section 267K applies in relation to this section as it applies in relation to sections 267G to 267I.<\/p>\n<p>Chapter 7<\/p>\n<h4>Certain interest from sources outside the State (s. 267M)<\/h4>\n<p>267M.<\/p>\n<h4>Tax rate applicable to certain deposit interest received by individuals.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;foreign deposit interest&#8217; means interest arising in a foreign territory which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if &#8211;<\/p>\n<p>(a)paragraphs (c), (d) and (g) of the definition of &#8216;relevant deposit&#8217; in section 256(1) were deleted, and<\/p>\n<p>(b)there were included in the definition of &#8216;relevant deposit taker&#8217; in section 256(1), bodies &#8211;<\/p>\n<p>(i)established in accordance with the law of a foreign territory, and<\/p>\n<p>(ii)authorised under the laws of that foreign territory to accept deposits of money;<\/p>\n<p>&#8216;foreign territory&#8217; means a territory other than a Member State of the European Communities;<\/p>\n<p>&#8216;specified interest&#8217; means interest arising in a Member State of the European Communities other than the State which would be interest payable in respect of a relevant deposit within the meaning of section 256(1) if &#8211;<\/p>\n<p>(a)in the definition of &#8216;relevant deposit&#8217; in section 256(1) &#8211;<\/p>\n<p>(i)the following were substituted for paragraphs (c) and (d):<\/p>\n<p>&#8216;(c)which, in the case of a relevant deposit taker which, by virtue of the law of a Member State of the European Communities other than the State, is resident for the purposes of tax in such a Member State, is held at a branch of the relevant deposit taker situated in a territory which is not a Member State,<\/p>\n<p>(d)which, in the case of a relevant deposit taker not so resident in a Member State of the European Communities for the purposes of tax, is held otherwise than at a branch of the relevant deposit taker situated in a Member State,&#8217;,<\/p>\n<p>and<\/p>\n<p>(ii)paragraph (g) were deleted,<\/p>\n<p>and<\/p>\n<p>(b)there were included in the definition of &#8216;relevant deposit taker&#8217; in section 256(1) bodies established in accordance with the law of any Member State of the European Communities other than the State which corresponds to &#8211;<\/p>\n<p>(i)the Credit Union Act 1997,<\/p>\n<p>(ii)the Trustee Savings Banks Acts 1989 and 2001, or<\/p>\n<p>(iii)the Post Office Savings Bank Acts 1861 to 1958;<\/p>\n<p>&#8216;tax&#8217; in relation to a Member State other than the State means tax which corresponds to income tax or corporation tax in the State.<\/p>\n<p>(2)<\/p>\n<p>(a)Notwithstanding section 15 and subject to paragraph (aa), where the taxable income of an individual includes &#8211;<\/p>\n<p>(i)specified interest, the part of taxable income, equal to that specified interest, shall be chargeable to tax at the rate specified in the definition of &#8216;appropriate tax&#8217; in section 256(1), or<\/p>\n<p>(ii)foreign deposit interest, so much of the part of taxable income, equal to that foreign deposit interest, as would otherwise be chargeable to tax at the standard rate, shall instead be chargeable to tax at the rate specified in the definition of &#8216;appropriate tax&#8217; in section 256(1).<\/p>\n<p>(aa)Notwithstanding paragraph (a), where any liability of the individual for a year of assessment in respect of the specified interest or foreign deposit interest, as the case may be, has not been discharged on or before the specified return date for the chargeable period (within the meaning of section 959A) for that year, then the part of taxable income, equal to that specified interest or that foreign deposit interest, shall be chargeable to tax at the rate of tax described in the Table to section 15 as the higher rate.<\/p>\n<p>Part 8A<\/p>\n<h4>Specified Financial Transactions (ss. 267N-267V)<\/h4>\n<p>Chapter 1<\/p>\n<h4>Interpretation (s. 267N)<\/h4>\n<p>267N. Interpretation.<br \/>\n(1)For the purpose of this Part &#8211;<\/p>\n<p>&#8220;asset&#8221;, has the same meaning as in section 532;<\/p>\n<p>&#8220;charges on income&#8221;, has the same meaning as in section 243;<\/p>\n<p>&#8220;credit return&#8221;, means &#8211;<br \/>\n(a)in the case of a credit transaction within the meaning of paragraph (a) or (b) of the definition of &#8216;credit transaction&#8217;, the excess of the consideration accruing to the finance undertaking from the borrower in respect of the asset over the consideration paid or payable by the finance undertaking for that asset, and<br \/>\n(b)in the case of a credit transaction within the meaning of paragraph (c) of the definition of &#8216;credit transaction&#8217;, the excess of the consideration (including any consideration paid or payable for the use of the asset during the period of the arrangement) accruing to the finance undertaking from the borrower in respect of the interest of the finance undertaking in the asset over the consideration paid or payable by the finance undertaking for that asset;<\/p>\n<p>&#8220;credit transaction&#8221;, means &#8211;<br \/>\n(a)an arrangement whereby a finance undertaking acquires an asset for the purpose of disposing of the full interest in that asset to a borrower in circumstances where &#8211;<br \/>\n(i)the consideration paid or payable by the borrower exceeds the consideration paid or payable by the finance undertaking for the asset,<br \/>\n(ii)all or part of that consideration is not required to be paid until a date later than the date of the disposal, and<br \/>\n(iii)the excess of the consideration paid or payable to the finance undertaking by the borrower in respect of the asset over the consideration paid or payable by the finance undertaking for the asset is equivalent to the return on a loan of money at interest,<br \/>\n(b)an arrangement whereby a finance undertaking acquires an asset and &#8211;<br \/>\n(i)immediately disposes of its full interest in that asset to a borrower for a consideration which exceeds the consideration paid or payable by the finance undertaking for the asset,<br \/>\n(ii)the borrower acquires and immediately disposes of the full interest in that asset to another person for a consideration which is at least 95 per cent of the consideration paid or payable by the finance undertaking for the acquisition of that asset,<br \/>\n(iii)all or part of the consideration for the acquisition of the asset by the borrower is not required to be paid by the borrower until a date later than the date of the purchase of the asset, and<br \/>\n(iv)the excess of the consideration paid or payable to the finance undertaking by the borrower in respect of the asset over the consideration paid or payable by the finance undertaking for the asset is equivalent to the return on a loan of money at interest,<br \/>\nor<br \/>\n(c)an arrangement whereby &#8211;<br \/>\n(i)a finance undertaking and a borrower jointly acquire an asset, or<br \/>\n(ii)a finance undertaking acquires an interest in an asset from a borrower, in circumstances where the borrower retains an interest in that asset,<br \/>\non terms whereby &#8211;<br \/>\n(I)the borrower &#8211;<br \/>\n(A)in the circumstances referred to in subparagraph (i) has exclusive use of the asset immediately and, in the circumstances referred to in subparagraph (ii), retains exclusive use of the asset immediately, as the case may be,<br \/>\n(B)is exclusively entitled to any income, profit or gain arising from or attributable to the asset (including any increase in the value of the asset), and<br \/>\n(C)agrees to make payments to the finance undertaking amounting to the aggregate of the consideration paid or payable by the finance undertaking for the acquisition of its interest in the asset and any consideration paid or payable by the borrower for the use of the asset during the period of the arrangement,<br \/>\n(II)the excess of the consideration (including any consideration paid or payable for the use of the asset during the period of the arrangement) accruing to the finance undertaking from the borrower in respect of the interest of the finance undertaking in the asset over the consideration paid or payable by the finance undertaking for the asset is equivalent to the return on a loan of money at interest, and<br \/>\n(III)the finance undertaking&#8217;s interest in the asset passes either immediately or by the end of a specified period of time, to the borrower for a consideration which exceeds the consideration paid by the finance undertaking for the asset;<\/p>\n<p>&#8220;deposit transaction&#8221;, means a transaction whereby &#8211;<br \/>\n(a)a person deposits a sum of money with a relevant deposit taker on terms under which it or any part of it may be repaid, either on demand or at a time or in circumstances agreed by or on behalf of the person making the deposit and the relevant deposit taker,<br \/>\n(b)the relevant deposit taker makes or credits a payment or a series of payments (in this Part referred to as the &#8216;deposit return&#8217;) over a period of time to the person &#8211;<br \/>\n(i)out of any profit resulting from the use of that money, and<br \/>\n(ii)in proportion to the money deposited by the person;<\/p>\n<p>&#8220;finance company&#8221;, means a company whose income consists wholly or mainly of either or both of the following &#8211;<br \/>\n(a)income from the leasing of machinery or plant, and<br \/>\n(b)income from the carrying on of specified financial transactions;<\/p>\n<p>&#8220;financial institution&#8221;, has the same meaning as in section 891B;<\/p>\n<p>&#8220;finance undertaking&#8221;, means a finance company or a financial institution;<\/p>\n<p>&#8220;investment certificate&#8221;, means a security which &#8211;<br \/>\n(a)is issued by a qualifying company to a person in order to establish the claim of that person over the rights and obligations represented by the certificate,<br \/>\n(b)entitles the owner to an amount equivalent to a share in the profits or losses derived from an asset held by the qualifying company which issued the certificate, in proportion to the number and value of the certificates owned,<br \/>\n(c)is issued to a person who is not a specified person, and<br \/>\n(d)is wholly or partly treated in accordance with generally accepted accounting practice as a financial liability of the qualifying company which issued the certificate;<\/p>\n<p>&#8220;investment return&#8221;, means &#8211;<br \/>\n(a)the excess (if any) of the consideration paid by the qualifying company on redemption of an investment certificate over the consideration paid in respect of that certificate by the beneficial owner to whom the certificate was first issued, and<br \/>\n(b)any other payments (if any) made from time to time by the qualifying company to the beneficial owner from profits or gains derived by the qualifying company from the asset and in consideration of the holding of the investment certificate;<\/p>\n<p>&#8220;investment transaction&#8221;, means a transaction whereby a person acquires investment certificates and receives an investment return;<\/p>\n<p>&#8220;loan&#8221;, means any loan or advance or any other arrangement whatever by virtue of which an amount equivalent to interest is paid or payable;<\/p>\n<p>&#8220;owner&#8221;, in relation to any security, 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, and &#8216;owned&#8217; shall be construed accordingly;<\/p>\n<p>&#8220;public&#8221;, means individuals generally, companies generally, or individuals and companies generally;<\/p>\n<p>&#8220;qualifying company&#8221;, means a company which &#8211;<br \/>\n(a)is resident in the State,<br \/>\n(b)issues investment certificates to investors, and<br \/>\n(c)redeems the investment certificates after a specified period of time;<\/p>\n<p>&#8220;relevant deposit&#8221;, have, respectively, the meanings assigned to them by section 256;<\/p>\n<p>&#8220;relevant deposit taker&#8221;, have, respectively, the meanings assigned to them by section 256;<\/p>\n<p>&#8220;relevant interest&#8221;, have, respectively, the meanings assigned to them by section 256;<\/p>\n<p>&#8220;specified financial transaction&#8221;, means &#8211;<br \/>\n(a)a credit transaction,<br \/>\n(b)a deposit transaction, or<br \/>\n(c)an investment transaction,<br \/>\nbut a transaction shall not be a specified financial transaction if the terms of the transaction are not such as would reasonably have been expected if the parties to the transaction were independent persons acting at arm&#8217;s length;<\/p>\n<p>&#8220;specified person&#8221;, has the meaning assigned to it by section 110 as if a reference in the definition of &#8216;specified person&#8217; in that section &#8211;<br \/>\n(a)to a qualifying company included a reference to a qualifying company within the meaning of this section, and<br \/>\n(b)to qualifying assets were a reference to assets within the meaning of this section.<\/p>\n<p>(2)Any reference in this Part to consideration &#8211;<\/p>\n<p>(a)paid or payable by a borrower or a finance undertaking shall be construed as a reference to the aggregate of amounts paid or payable by the borrower or finance undertaking, as the case may be,<\/p>\n<p>(b)shall not include any amount in respect of which a borrower or a finance undertaking may claim &#8211;<\/p>\n<p>(i)a deduction under Chapter 1 of Part 8 of the Value-Added Tax Consolidation Act 2010, or<\/p>\n<p>(ii)a refund of value-added tax under an order under section 103 of that Act,<\/p>\n<p>and<\/p>\n<p>(c)shall not include any amount chargeable by a finance undertaking in respect of fees, charges or similar payments.<\/p>\n<p>Chapter 2 Credit Return (ss. 267O-267P)<br \/>\n267O. Treatment of credit return.<br \/>\n(1)Subject to section 130, a credit return shall be treated for all the purposes of the Tax Acts as if it were interest paid or payable, as the case may be, on a loan made by the finance undertaking to the borrower, or a security issued by the borrower to the finance undertaking, as the case may be, and the return shall be chargeable to tax accordingly.<\/p>\n<p>(2)The amount of the credit return shall not be regarded as expenditure on an asset for the purpose of an allowance under Part 9, section 670, Part 29 or any other provision of the Tax Acts relating to the making of allowances in accordance with Part 9.<\/p>\n<p>(3)The amount of the credit return shall not be regarded as expenditure on an asset for the purpose of section 552.<\/p>\n<p>267P.<\/p>\n<h4>Treatment of credit transaction.<\/h4>\n<p>(1)A reference to a loan in section 122 or in Part 8 shall be deemed to include a reference to a credit transaction.<\/p>\n<p>(2)Acquisitions and disposals of an asset by the finance undertaking for the purpose of a credit transaction, within the meaning of paragraph (a) or (b) of the definition of &#8216;credit transaction&#8217; in section 267N shall, where the finance undertaking is carrying on a trade which consists of or includes specified financial transactions, be regarded as made in the course of that trade.<\/p>\n<p>(3)The borrower shall not be treated as having incurred a loss, for any purpose of the Tax Acts, on the disposal of the asset in the circumstances referred to in paragraph (b)(ii) of the definition of &#8216;credit transaction&#8217; in section 267N.<\/p>\n<p>(4)The finance undertaking shall not be entitled to any allowance under Part 9, section 670, Part 29 or any other provision of the Tax Acts relating to the making of allowances in accordance with Part 9, in respect of expenditure incurred on assets acquired for the purpose of entering into a credit transaction.<\/p>\n<p>(5)Where an asset is acquired by a borrower under a credit transaction, in the circumstances referred to in paragraph (c)(i) of the definition of &#8216;credit transaction&#8217; in section 267N, the borrower shall be deemed to have acquired the full interest in that asset for the purpose of claiming any allowance under Part 9, section 670, Part 29 or any other provision of the Tax Acts relating to the making of allowances in accordance with Part 9.<\/p>\n<p>(6)The disposal of the borrower&#8217;s interest in the asset to the financial undertaking, in the circumstances referred to in paragraph (c)(ii) of the definition of &#8216;credit transaction&#8217; in section 267N, shall not be construed as an event giving rise to an allowance or charge, as the case may be, within the meaning of section 274 or 288.<\/p>\n<p>(7)The acquisition of an asset by the borrower, in the circumstances referred to in paragraph (c)(III) of the definition of &#8216;credit transaction&#8217; in section 267N, shall not be construed as expenditure on an asset for the purpose of claiming any allowance under Part 9, section 670, Part 29 or any other provision of the Tax Acts relating to the making of allowances in accordance with Part 9.<\/p>\n<p>(8)Except in respect of a claim to any allowance referred to in subsection (5), no part of the consideration paid or payable by the borrower to the finance undertaking, other than an amount equal to the credit return, may be treated by the borrower as an amount which may be deducted in the computation of the profits or gains to be charged to tax under Schedule D.<\/p>\n<p>Chapter 3<\/p>\n<h4>Deposit Return (s. 267Q)<\/h4>\n<p>267Q.<\/p>\n<h4>Treatment of deposit return.<\/h4>\n<p>Subject to section 130, a deposit return shall be treated for all the purposes of the Tax Acts as if it were relevant interest paid on a deposit of money and for this purpose &#8211;<\/p>\n<p>(a)Chapter 4 of Part 8 shall apply to the deposit return as if it were relevant interest on a relevant deposit, and<\/p>\n<p>(b)the relevant deposit taker shall not be regarded as carrying on a trade in partnership with the beneficial owner of the deposit for the purposes of Part 43 merely by virtue of the deposit arrangement.<\/p>\n<p>Chapter 4 Investment Certificates and Returns (ss. 267R-267S)<br \/>\n267R. Treatment of investment return.<br \/>\nSubject to section 130, the Tax Acts shall apply to an investment return as if that investment return were interest on a security and the return shall be chargeable to tax accordingly.<\/p>\n<p>267S. Treatment of certificate owner.<br \/>\n(1)For the purposes of the Tax Acts, the owner of the investment certificate shall not be regarded as having a legal or beneficial interest in the assets held by the qualifying company.<\/p>\n<p>(2)Income, profits, gains or losses arising from or attributable to the assets held by the qualifying company (including any increase or decrease in the value of the asset) shall be income, profits, gains or losses, as the case may be, of the qualifying company and the qualifying company shall be chargeable to corporation tax accordingly.<\/p>\n<p>(3)The owner of the investment certificate shall not be entitled to an allowance under Part 9, section 670, Part 29 or any other provision of the Tax Acts relating to the making of allowances in accordance with Part 9 in respect of expenditure on the assets held by the qualifying company.<\/p>\n<p>Chapter 5 Reporting (ss. 267T)<br \/>\n267T.<\/p>\n<h4>Reporting.<\/h4>\n<p>Part 38 in so far as it relates to the reporting of interest payments shall apply to a deposit return, a credit return or an investment return as if that return were an interest payment.<\/p>\n<p>Chapter 6<\/p>\n<h4>Application (ss. 267U-267V)<\/h4>\n<p>267U. Application.<br \/>\n(1)This Part applies to a specified financial transaction where a person who is &#8211;<\/p>\n<p>(a)a party to the transaction, and<\/p>\n<p>(b)within the charge to tax,<\/p>\n<p>makes an election in writing to the appropriate inspector that this Part applies to that transaction.<\/p>\n<p>(2)An election under this section &#8211;<\/p>\n<p>(a)shall be made in a form approved by the Revenue Commissioners and containing such particulars relating to the transaction concerned, and the parties to that transaction, as may be specified in that form, and<\/p>\n<p>(b)may be made either in respect of an individual transaction or in respect of a series of transactions of a similar nature.<\/p>\n<p>(3)Where an election is made in accordance with this section &#8211;<\/p>\n<p>(a)this Part shall apply to that transaction or series of transactions, and<\/p>\n<p>(b)the party making the election shall notify any other person who is a party to a specified financial transaction, that the transaction is a specified financial transaction.<\/p>\n<p>267V.<\/p>\n<h4>Transactions to avoid tax.<\/h4>\n<p>This Part shall not apply to any transaction unless that transaction has been undertaken for bona fide commercial reasons and does not form part of any arrangement or scheme of which the main purpose or one of the main purposes is avoidance of liability to income tax, corporation tax, capital gains tax, value-added tax, stamp duty or capital acquisitions tax.<\/p>\n<p>Part 28<\/p>\n<h4>Purchase and Sale of Securities (ss. 748-753F)<\/h4>\n<p>Chapter 1 Purchase and sale of securities (ss. 748-751B)<br \/>\n748.<\/p>\n<h4>Interpretation and application (Chapter 1).<\/h4>\n<p>(1)In this Chapter and in Schedule 21 &#8211;<\/p>\n<p>&#8220;distribution&#8221; has the same meaning as in the Corporation Tax Acts;<\/p>\n<p>&#8220;interest&#8221; includes a distribution and any dividend which is not such a distribution and, in applying references to interest in relation to such a distribution, &#8220;gross interest&#8221; or &#8220;gross amount&#8221; means the distribution together with the tax credit to which the recipient of the distribution is entitled in respect of it and &#8220;net interest&#8221; means the distribution exclusive of any such tax credit;<\/p>\n<p>&#8220;person&#8221; includes any body of persons, and references to a person entitled to any exemption from income tax include, in a case of an exemption expressed to apply to income of a trust or fund, references to the persons entitled to make claims for the granting of that exemption;<\/p>\n<p>&#8220;securities&#8221; includes stocks and shares;<\/p>\n<p>securities shall be deemed to be similar if they entitle their holders to the same rights against the same persons as to capital and interest and the same remedies for the enforcement of those rights, notwithstanding any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred.<\/p>\n<p>(2)Subject to this section, this Chapter shall apply in the case of a purchase by a person (in this Chapter referred to as &#8220;the first buyer&#8221;) of any securities and their subsequent sale by the first buyer, where the result of the transaction is that interest becoming payable in respect of the securities (in this Chapter referred to as &#8220;the interest&#8221;) is receivable by the first buyer.<\/p>\n<p>(3)This Chapter shall not apply in the case where &#8211;<\/p>\n<p>(a)the time elapsing between the purchase by the first buyer and the first buyer&#8217;s taking steps to dispose of the securities exceeds 6 months, or<\/p>\n<p>(b)that time exceeds one month and the purchase and sale were each effected at the current market price and the sale was not effected in pursuance of an agreement or arrangement made before or at the time of the purchase.<\/p>\n<p>(4)[deleted]<\/p>\n<p>(5)The reference in subsection (3) to the first buyer taking steps to dispose of the securities shall be construed &#8211;<\/p>\n<p>(a)if the first buyer sold the securities in the exercise of an option the first buyer had acquired, as a reference to the first buyer&#8217;s acquisition of the option, and<\/p>\n<p>(b)in any other case, as a reference to the first buyer selling the securities.<\/p>\n<p>(6)<\/p>\n<p>(a)For the purposes of this Chapter but subject to paragraph (b), a sale of securities similar to, and of the like nominal amount as, securities previously bought (in this subsection referred to as &#8220;the original securities&#8221;) shall be equivalent to a sale of the original securities and subsection (5) shall apply accordingly, and, where the first buyer bought parcels of similar securities at different times, a subsequent sale of any of the securities shall, in so far as may be, be related to the last of the parcels to be bought, and then to the last but one, and so on.<\/p>\n<p>(b)A person shall be under no greater liability to tax by virtue of this subsection than would have been the case if instead of selling the similar securities the person had sold the original securities.<\/p>\n<p>(7)Where, at the time when a trade is or is deemed to be set up and commenced, any securities form part of the trading stock belonging to the trade, those securities shall be treated for the purposes of this section as having been sold at that time in the open market by the person to whom they belonged immediately before that time and as having been purchased at that time in the open market by the person thereafter engaged in carrying on the trade, and, subject to this subsection, where there is a change in the persons engaged in carrying on a trade which is not a change on which the trade is deemed to be discontinued, this section shall apply in relation to the person so engaged after the change as if anything done to or by that person&#8217;s predecessor had been done to or by that person.<\/p>\n<p>749.<\/p>\n<h4>Dealers in securities.<\/h4>\n<p>(1)Subject to this section, where the first buyer is engaged in carrying on a trade which consists of or comprises dealings in securities, then, in computing for any of the purposes of the Tax Acts the profits arising from or loss sustained in the trade, the price paid by the first buyer for the securities shall be reduced by the appropriate amount in respect of the interest determined in accordance with Schedule 21.<\/p>\n<p>(2)Where in the opinion of the Revenue Commissioners the first buyer is bona fide carrying on the business of a discount house in the State, or where the first buyer is a member of a stock exchange in the State who is recognised by the committee of that stock exchange as carrying on the business of a dealer, subsection (1) shall not apply in relation to securities bought in the ordinary course of such business.<\/p>\n<p>(2A)<\/p>\n<p>(a)Subsection (1) shall not apply for a chargeable period if the securities are overseas securities purchased by the first buyer in the ordinary course of the first buyer&#8217;s trade as a dealer in securities and the following conditions are satisfied &#8211;<\/p>\n<p>(i)that the interest payable in respect of all such overseas securities to which this Chapter applies is brought into account in computing, for the purposes of the Tax Acts, the profits or gains arising from, or losses sustained in, the trade for the chargeable period, and<\/p>\n<p>(ii)where credit against tax would, but for this section, fall to be allowed for the chargeable period in respect of that interest by virtue of Part 14 or 35 or Schedule 24, that the first buyer elects by notice in writing, on or before the specified return date for the chargeable period, that such credit shall not be so allowed.<\/p>\n<p>(b)In this subsection &#8211;<\/p>\n<p>&#8216;foreign local authority&#8217; means an authority, corresponding in substance to a local authority for the purposes of the Local Government Act 2001, which is established outside the State and whose functions are carried on primarily outside the State;<\/p>\n<p>&#8216;foreign local government&#8217; means any local or regional government in any jurisdiction outside the State;<\/p>\n<p>&#8216;foreign public authority&#8217; means an authority, corresponding in substance to a public authority for the purposes of the Local Government Act 2001, which is established outside the State and whose functions are carried on primarily outside the State;<\/p>\n<p>&#8216;overseas securities&#8217; means securities issued &#8211;<\/p>\n<p>(i)by a government of a territory outside of the State,<\/p>\n<p>(ii)by a foreign local authority, foreign local government or foreign public authority, or<\/p>\n<p>(iii)by any other body of persons not resident in the State;<\/p>\n<p>&#8216;specified return date for the chargeable period&#8217; has the same meaning as in section 959A.<\/p>\n<p>(2B)Where an election is made in accordance with subsection (2A)(a)(ii) &#8211;<\/p>\n<p>(a)then, notwithstanding Parts 14 and 35 and Schedule 24, credit against tax in respect of the interest shall not be allowed by virtue of either of those Parts or, as the case may be, that Schedule,<\/p>\n<p>(b)that election shall be included in the return, required to be made by the first buyer under Chapter 3 of Part 41A, for the chargeable period, and<\/p>\n<p>(c)that election shall have effect only for the chargeable period for which it is made.<\/p>\n<p>(2C)Subsection (1) shall not apply for a chargeable period if the securities are securities, which are not chargeable assets for the purposes of the Capital Gains Tax Acts by virtue of section 607, purchased by the first buyer in the ordinary course of the first buyer&#8217;s trade as a dealer in securities and the interest payable in respect of all such securities to which this Chapter applies is brought into account in computing, for the purposes of the Tax Acts, the profits or gains arising from, or losses sustained in, the trade for the chargeable period.<\/p>\n<p>(3)Subsection (1) shall not apply if the interest is to any extent required to be taken into account under section 752 as if it were a trading receipt which had not borne tax or would to any extent be so required to be taken into account but for paragraph 2 of Schedule 22.<\/p>\n<p>750.<\/p>\n<h4>Persons entitled to exemption.<\/h4>\n<p>Where the first buyer is entitled under any enactment to an exemption from tax which apart from this section would extend to the interest, then, subject to this section, the exemption shall not extend to an amount equal to the appropriate amount in respect of the interest determined in accordance with Schedule 21; but, if the first buyer is so entitled and any annual payment is payable by the first buyer out of the interest, the annual payment shall be deemed as to the whole of that payment &#8211;<\/p>\n<p>(a)to be paid out of profits or gains not brought into charge to tax, and section 238 shall apply accordingly, and<\/p>\n<p>(b)for the purposes of corporation tax, not to be a payment which is a charge on income.<\/p>\n<p>751.<\/p>\n<h4>Traders other than dealers in securities.<\/h4>\n<p>(1)Where the first buyer carries on a trade not within section 749, then, in ascertaining &#8211;<\/p>\n<p>(a)for the purposes of income tax, whether any, and if so what, repayment of tax is to be made to the first buyer under section 381 by reference to any loss sustained in the trade for the year of assessment the first buyer&#8217;s income for which includes the interest, there shall be disregarded &#8211;<\/p>\n<p>(i)the appropriate amount in respect of the interest determined in accordance with Schedule 21, and<\/p>\n<p>(ii)any tax paid on that amount;<\/p>\n<p>(b)for the purposes of corporation tax, the income or profits against which the loss may be set off under section 396, there shall be disregarded the appropriate amount in respect of the interest determined in accordance with Schedule 21.<\/p>\n<p>(2)Where the first buyer is a body corporate and carries on a trade not within section 749 or a business consisting mainly in the making of investments, then, if any annual payment payable by the body corporate is to any extent payable out of the interest, that annual payment shall be deemed to that extent &#8211;<\/p>\n<p>(a)for the purposes of income tax, not to be payable out of profits or gains brought into charge to tax, and section 238 shall apply accordingly, and<\/p>\n<p>(b)for the purposes of corporation tax, not to be a payment which is a charge on income.<\/p>\n<p>751A.<\/p>\n<h4>Exchange of shares held as trading stock.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;new holding&#8217;, in relation to original shares, and &#8216;original shares&#8217; have, respectively, the same meanings as in section 584(1).<\/p>\n<p>(2)Subsections (4) and (5) shall apply where a transaction to which this section applies occurs in relation to any original shares &#8211;<\/p>\n<p>(a)to which a person carrying on a business consisting wholly or partly of dealing in securities is beneficially entitled, and<\/p>\n<p>(b)which are such that a profit on their sale would form part of the trading profits of that business.<\/p>\n<p>(3)This section applies to any transaction, being a disposal of original shares which, if the original shares were not such as are mentioned in subsection (2) would result in the disposal not being treated as a disposal by virtue of sections 584 to 587; but does not apply to any transaction in relation to which section 751B applies.<\/p>\n<p>(4)Subject to subsection (5), in making any computation in accordance with the provisions of the Tax Acts applicable to trading profits chargeable to tax under Case I of Schedule D &#8211;<\/p>\n<p>(a)the transaction to which this section applies shall be treated as not involving any disposal of the original shares, and<\/p>\n<p>(b)the new holding shall be treated as the same asset as the original shares.<\/p>\n<p>(5)Where, under a transaction to which this section applies, the person concerned receives or becomes entitled to receive any consideration in addition to the new holding, subsection (4) shall have effect as if the references to the original shares were references to the proportion of them which the market value of the new holding at the time of the transaction bears to the aggregate of that value and the market value at that time (or, if it is cash, the amount) of that consideration.<\/p>\n<p>(6)Subsections (4) and (5) shall have effect with the necessary modifications in relation to any computation made for the purposes of section 707(4) in a case where the original shares held by the company concerned and the new holding are treated as the same asset by virtue of any of sections 584 to 587.<\/p>\n<p>751B.<\/p>\n<h4>Exchange of Irish Government bonds.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;chargeable period&#8217; has the same meaning as in section 321(2);<\/p>\n<p>&#8216;the exchange&#8217; in relation to an investor, means the exchange of old securities for new securities under the Exchange Programme in Irish Government bonds as designated by the National Treasury Management Agency;<\/p>\n<p>&#8216;investor&#8217; means any person who as beneficial owner of securities exchanges them for new securities under the exchange;<\/p>\n<p>&#8216;last payment day&#8217; in relation to old securities, means the last day, before the day on which the exchange takes place, on which interest is payable in respect of the old securities; and in a case where a payment of such interest may be made on a number of days, that interest shall be treated as payable on the first of those days; but if there has not been any day upon which interest in respect of old securities has been payable before the day on which the exchange takes place, the last payment day means the day of issue of the old securities;<\/p>\n<p>&#8216;old securities&#8217; means the first-mentioned securities in the definition of &#8216;investor&#8217;;<\/p>\n<p>&#8216;new securities&#8217; means the securities issued to an investor in exchange for old securities under the exchange;<\/p>\n<p>&#8216;securities&#8217; means securities to which section 36 applies.<\/p>\n<p>(2)<\/p>\n<p>(a)Subsections (3) and (5) shall apply as respects an investor who is a person carrying on a trade or business which consists wholly or partly of dealing in securities in respect of which any profits or gains are chargeable to tax under Case I of Schedule D.<\/p>\n<p>(b)Subsection (6) shall apply as respects any investor other than an investor referred to in paragraph (a).<\/p>\n<p>(3)There shall be computed for the chargeable period in which the exchange by an investor to whom this subsection applies takes place, an amount of tax (in this section referred to as &#8216;the deferred tax&#8217;) where the deferred tax is found by the formula &#8211;<\/p>\n<p>(a)in a case where the investor is chargeable to tax in the chargeable period in respect of interest received in the chargeable period &#8211;<\/p>\n<p>A &#8211; B &#8211; C, and<\/p>\n<p>(b)in any other case &#8211;<\/p>\n<p>A &#8211; B<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of tax which, apart from this section, would finally fall to be borne by the investor for that chargeable period;<\/p>\n<p>Bis the amount of tax which, apart from this section, would finally fall to be borne by the investor for that chargeable period if the exchange were not taken into account in computing that tax, but, in a case to which paragraph (b) applies, includes the tax on interest which has accrued in respect of old securities from the beginning of that chargeable period, or the day on which the old securities were acquired by the investor, whichever is later, to the day on which the exchange took place; and<\/p>\n<p>Cis the amount representing the tax on accrued interest for that chargeable period in respect of old securities which is included in A.<\/p>\n<p>(4)For the purposes of subsection (3) the accrued interest in respect of old securities is the interest accrued on such securities from &#8211;<\/p>\n<p>(a)the last payment day in respect of the old securities, or<\/p>\n<p>(b)the day on which the old securities were acquired by an investor,<\/p>\n<p>whichever is later.<\/p>\n<p>(5)Where an investor to whom this section applies so elects, the amount of tax which, apart from this subsection, finally falls to be borne for the chargeable period in which the exchange takes place, shall be reduced by the amount of the deferred tax and the amount of the deferred tax shall be deemed to be an amount of tax which finally falls to be borne for the chargeable period (in this subsection referred to as &#8216;the later chargeable period&#8217;) in which the new securities are disposed of in addition to any tax, which apart from this subsection, finally falls to be borne for the later chargeable period and the provisions of Part 41A shall apply accordingly.<\/p>\n<p>(6)<\/p>\n<p>(a)Subject to paragraph (b), the amount of capital gains tax, which apart from this subsection, would be chargeable on chargeable gains accruing to an investor to whom this subsection applies, on the disposal of old securities, after such chargeable gains have been reduced by any allowable losses under section 31, shall, if the investor so elects, be deemed to be an amount of capital gains tax chargeable on chargeable gains which are deemed to accrue to the investor in the chargeable period (in this subsection referred to as &#8216;the later chargeable period&#8217;) in which the new securities are disposed of (and not in any other chargeable period) in addition to any capital gains tax chargeable on chargeable gains accruing to the investor in the later chargeable period and the provisions of Part 41A shall apply accordingly.<\/p>\n<p>(b)Section 815 shall apply to the disposal of the old securities to which paragraph (a) applies as if &#8211;<\/p>\n<p>(i)there were inserted, in subsection (3)(b) of that section after &#8216;profits of the trade&#8217;, &#8216;unless the trade consists wholly or partly of a life business the profits of which are not assessed to corporation tax under Case I of Schedule D for that accounting period&#8217;, and<\/p>\n<p>(ii)subsection (3)(c) of that section were deleted.<\/p>\n<p>(7)The election referred to in subsections (5) and (6) shall be made within a period of two years after the end of the chargeable period in which the disposal of the old securities takes place.<\/p>\n<p>&nbsp;<\/p>\n<p>Chapter 2<\/p>\n<h4>Purchases of shares by financial concerns and persons exempted from tax, and restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits (ss. 752-753)<\/h4>\n<p>752.<\/p>\n<h4>Purchases of shares by financial concerns and persons exempted from tax.<\/h4>\n<p>(1)For the purposes of this Chapter and Schedule 22 &#8211;<\/p>\n<p>(a)references to a dividend shall, except where the context otherwise requires, be construed as including references to a distribution, and to an amount which under any enactment is to be treated as a distribution, made on or after the 6th day of April, 1976,<\/p>\n<p>(b)in relation to such a distribution, including an amount to be so treated as a distribution, references to a dividend being paid or becoming payable or being received or becoming receivable on shares shall be construed as references to a distribution or an amount to be so treated as a distribution being made or received in respect of shares or securities, and<\/p>\n<p>(c)in applying references to a dividend in relation to a distribution, &#8220;gross amount&#8221; or &#8220;gross dividend&#8221; means the distribution together with the tax credit to which the recipient of the distribution is entitled in respect of it, and &#8220;net amount&#8221; or &#8220;net dividend&#8221; means the distribution exclusive of any such tax credit,<\/p>\n<p>and in this subsection &#8220;distribution&#8221; has the same meaning as in the Corporation Tax Acts.<\/p>\n<p>(2)<\/p>\n<p>(a)In this section and in Schedule 22 &#8211;<\/p>\n<p>&#8220;company&#8221; includes any body corporate, but does not include a company not resident in the State;<\/p>\n<p>&#8220;control&#8221;, in relation to a body corporate, means the power of a person to secure &#8211;<br \/>\n(i)by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or<br \/>\n(ii)by virtue of any powers conferred by the constitution, articles of association or other document regulating that or any other body corporate,<br \/>\nthat the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person and, in relation to a partnership, means the right to a share of more than 50 per cent of the assets, or of more than 50 per cent of the income, of the partnership;<\/p>\n<p>&#8220;person&#8221; includes any body of persons, and references to a person entitled to any exemption from tax include, in a case of an exemption expressed to apply to income of a trust or fund, references to the persons entitled to make claims for the granting of that exemption;<\/p>\n<p>&#8220;share&#8221; includes stock other than debenture or loan stock;<\/p>\n<p>&#8220;shares of a class to which this section applies&#8221; means &#8211;<br \/>\n(i)shares of any class forming part of a company&#8217;s share capital, other than a class of fully-paid preference shares carrying only a right to dividends at a rate per cent of the nominal value of the shares that is fixed, and<br \/>\n(ii)in respect of which there are reasonable grounds for considering that the yield does not substantially exceed the yield generally obtainable on preference shares the prices of which are quoted on a stock exchange in the State.<\/p>\n<p>(b)For the purposes of this section and Schedule 22 &#8211;<\/p>\n<p>(i)shares shall be regarded as of different classes if the rights and obligations respectively attached to them are distinguishable as regards the payment of dividends or the amount paid up or in any other respect;<\/p>\n<p>(ii)any reference to shares acquired in right of other shares includes a reference to shares acquired in pursuance of an offer or invitation which was restricted to holders of those other shares;<\/p>\n<p>(iii)2 trades shall be regarded as under the same control if they are carried on by persons one of whom is a body of persons over whom the other has control or both of whom are bodies of persons under the control of a third person, and several trades shall be regarded as under the same control if each is under the same control as all of the others, and in this subparagraph &#8220;body of persons&#8221; includes a partnership.<\/p>\n<p>(3)Where a person engaged in carrying on a trade which consists of or comprises dealings in shares or other investments becomes entitled to receive a dividend on a holding of shares of a class to which this section applies, being shares sold or issued to that person or otherwise acquired by that person not more than 10 years before the date on which the dividend becomes payable, and the dividend is to any extent paid out of profits accumulated before the date on which the shares were so acquired, then, if those shares, or those shares together with &#8211;<\/p>\n<p>(a)any other shares the dividend on which is payable to that person and which were sold or issued to that person or otherwise acquired by that person not more than 10 years before the date on which the dividend becomes payable,<\/p>\n<p>(b)in a case where the trade is under the same control as another trade which consists of or comprises dealings in shares or other investments, any shares the dividend on which is payable to the person engaged in carrying on that other trade and which were sold or issued to that person or otherwise acquired by that person not more than 10 years before the date on which the dividend becomes payable, and<\/p>\n<p>(c)any shares to be taken into account under subsection (5),<\/p>\n<p>amount to 10 per cent or more of the issued shares of that class, the net amount of the dividend received on the shares in the holding shall, to the extent to which it was paid out of profits accumulated before the shares were acquired, be taken into account in computing for the purposes of the Tax Acts the profits or gains or losses of the trade as if it were a trading receipt which had not borne tax.<\/p>\n<p>(4)Where a person entitled under the Tax Acts to an exemption from tax which extends to dividends on shares becomes entitled to receive a dividend on a holding of shares of a class to which this section applies, being shares sold or issued to that person or otherwise acquired by that person not more than 10 years before the date on which the dividend becomes payable, and the dividend is to any extent paid out of the profits accumulated before the date on which the shares were so acquired, then, if those shares, or those shares together with &#8211;<\/p>\n<p>(a)any other shares the dividend on which is payable to that person and which were sold or issued to that person or otherwise acquired by that person not more than 10 years before the date on which the dividend becomes payable, and<\/p>\n<p>(b)any shares to be taken into account under subsection (5),<\/p>\n<p>amount to 10 per cent or more of the issued shares of that class, the exemption shall, to an extent proportionate to the extent to which the dividend is paid out of profits accumulated before the date on which the shares were acquired, not apply to the dividend; but, if any annual payment is payable by that person out of the dividend, that annual payment shall be deemed as to the whole of that payment &#8211;<\/p>\n<p>(i)to be paid out of profits or gains not brought into charge to tax and section 238 shall apply accordingly, and<\/p>\n<p>(ii)for the purposes of corporation tax, not to be a payment which is a charge on income.<\/p>\n<p>(5)Where 2 or more persons, being persons engaged in carrying on trades of the kind mentioned in subsection (3) or entitled to an exemption of the kind mentioned in subsection (4), have each acquired shares in a company and the transactions in pursuance of which the acquisition was made were either transactions entered into by those persons acting in concert or transactions together comprised in any arrangements made by any person, then, in the application of either of those subsections in relation to a dividend payable to one of those persons on shares which include shares so acquired (or shares acquired in right of those shares), there shall be taken into account under subsection (3)(c) or, as the case may be, subsection (4)(b) any shares the dividend on which is payable to any other of those persons, being shares so acquired by that other person (or shares acquired in right of those shares).<\/p>\n<p>(6)Where any shares have been sold or otherwise disposed of by a person who held shares of that kind acquired at different times, it shall be assumed for the purposes of this section that shares which have been held for a longer time have been disposed of before shares which have been held for a shorter time.<\/p>\n<p>(7)Where, at the time when a trade is or is deemed to be set up and commenced, any shares form part of the trading stock belonging to the trade, those shares shall be regarded for the purposes of this section as having been acquired at that time by the person then engaged in carrying on the trade, and, subject to this subsection, where there is a change in the persons engaged in carrying on a trade which is not a change on which the trade is deemed to be discontinued, this section shall apply in relation to the person so engaged after the change as if anything done to or by that person&#8217;s predecessor had been done to or by that person.<\/p>\n<p>(8)Schedule 22 shall apply for the purpose of ascertaining whether a dividend is to be regarded as paid to any extent out of profits accumulated before a particular date.<\/p>\n<p>753.<\/p>\n<h4>Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits.<\/h4>\n<p>Where a person or a body of persons carries on a trade, other than such a trade mentioned in section 752(3), and the person&#8217;s or the body of persons&#8217; income for any year of assessment or, as the case may be, accounting period includes a dividend the net amount of which would, if the trade were such a trade mentioned in section 752(3), be required to any extent to be taken into account as a trading receipt which has not borne tax, then, in ascertaining &#8211;<\/p>\n<p>(a)for the purposes of income tax, whether any or what repayment of tax is to be made to that person or body of persons under section 381 by reference to any loss sustained in the trade for that year of assessment, there shall be disregarded &#8211;<\/p>\n<p>(i)the gross amount corresponding to so much of that net amount as would have been required to be taken into account as a trading receipt which has not borne tax, and<\/p>\n<p>(ii)any tax credit in respect of the amount required to be disregarded under subparagraph (i);<\/p>\n<p>(b)for the purposes of corporation tax, the income or profits against which the loss may be set off under section 396, there shall be disregarded the gross amount corresponding to so much of that net amount as would have been required to be taken into account as a trading receipt which has not borne tax.<\/p>\n<p>Chapter 3<\/p>\n<h4>Stock borrowing and repurchase agreements (ss. 753A-753F)<\/h4>\n<p>753A.<\/p>\n<h4>Interpretation (Chapter 3).<\/h4>\n<p>In this Chapter &#8211;<\/p>\n<p>&#8220;Act of 1999&#8221; means the Stamp Duty Consolidation Act 1999;<\/p>\n<p>&#8220;building society&#8221; has the same meaning as it has in Chapter 4 of Part 8;<\/p>\n<p>&#8220;equivalent stock&#8221; &#8211;<br \/>\n(a)in relation to a stock borrowing, has the same meaning as it has in section 87 of the Act of 1999, and<br \/>\n(b)in relation to a repurchase agreement, has the same meaning as it has in section 87A of the Act of 1999;<\/p>\n<p>&#8220;financial transaction&#8221; means a transaction comprising &#8211;<br \/>\n(a)a stock borrowing or a stock transfer in respect of which &#8211;<br \/>\n(i)the stock seller or stock buyer is a qualifying institution, and<br \/>\n(ii)the other party is not an individual or a partnership,<br \/>\nand<br \/>\n(b)the corresponding stock return for that stock borrowing or stock transfer,<br \/>\nwhere it is reasonable to consider that the transaction, and all associated agreements, arrangements or transactions, are equivalent to a transaction or agreement for the lending of money, or money&#8217;s worth, at interest;<\/p>\n<p>&#8220;investment undertaking&#8221; has the same meaning as it has in Chapter 1A of Part 27;<\/p>\n<p>&#8220;lender&#8221; has the same meaning as it has in section 87 of the Act of 1999;<\/p>\n<p>&#8220;manufactured payment&#8221; means a payment by a stock buyer to a stock seller, whether made directly or indirectly, to reimburse that stock seller for any distribution or interest arising or accruing to the stock buyer as a consequence of the transfer of the qualifying securities as part of a financial transaction;<\/p>\n<p>&#8220;pension scheme&#8221; has the same meaning as it has in Chapter 4 of Part 8;<\/p>\n<p>&#8220;qualifying institution&#8221; means &#8211;<br \/>\n(a)a company within the charge to corporation tax,<br \/>\n(b)an investment undertaking,<br \/>\n(c)a pension scheme,<br \/>\n(d)a scheme, the income of which, in whole or in part, is exempt from income tax under section 790B,<br \/>\n(e)a person whose income, in whole or in part, is exempt &#8211;<br \/>\n(i)from income tax, pursuant to section 207(1)(b), or<br \/>\n(ii)corporation tax, by virtue of section 207(1)(b) as it applies for the purposes of corporation tax under section 76(6),<br \/>\nor<br \/>\n(f)a building society;<\/p>\n<p>&#8220;qualifying securities&#8221; means &#8211;<br \/>\n(a)securities that are interest bearing, discounted or premium-bearing, or<br \/>\n(b)stocks or shares that are quoted on a recognised stock exchange;<\/p>\n<p>&#8220;repo seller&#8221; has the same meaning as it has in section 87A of the Act of 1999;<\/p>\n<p>&#8220;repo buyer&#8221; has the same meaning as it has in section 87A of the Act of 1999;<\/p>\n<p>&#8220;repurchase agreement&#8221; means a repurchase agreement (within the meaning of section 87A of the Act of 1999) in respect of qualifying securities;<\/p>\n<p>&#8220;security&#8221; has the same meaning as it has in Chapter 2 of Part 6;<\/p>\n<p>&#8220;stock borrower&#8221; has the same meaning as it has in section 87 of the Act of 1999;<\/p>\n<p>&#8220;stock borrowing&#8221; means a stock borrowing (within the meaning of section 87 of the Act of 1999) in respect of qualifying securities;<\/p>\n<p>&#8220;stock buyer&#8221; means &#8211;<br \/>\n(a)in relation to a stock borrowing, a stock borrower, and<br \/>\n(b)in relation to a repurchase agreement, a repo buyer;<\/p>\n<p>&#8220;stock return&#8221;<br \/>\n(a)in relation to a stock borrowing, has the same meaning as it has in section 87 of the Act of 1999, and<br \/>\n(b)in relation to a repurchase agreement, has the same meaning as it has in section 87A of the Act of 1999,<br \/>\nin each case subject to the modification that a reference in the definition of that term in the section concerned to &#8216;stock&#8217; shall be construed as a reference to qualifying securities;<\/p>\n<p>&#8220;stock transfer&#8221; in respect of a repurchase agreement, means a stock transfer (within the meaning of section 87A of the Act of 1999);<\/p>\n<p>&#8220;stock seller&#8221; means &#8211;<br \/>\n(a)in relation to a stock borrowing, a lender, and<br \/>\n(b)in relation to a repurchase agreement, a repo seller.<\/p>\n<p>753B.<\/p>\n<h4>Application.<\/h4>\n<p>(1)This Chapter shall apply to a financial transaction, entered into on or after 1 January 2020, other than &#8211;<\/p>\n<p>(a)a financial transaction &#8211;<\/p>\n<p>(i)pursuant to which a stock buyer holds qualifying securities or equivalent stock, and<\/p>\n<p>(ii)as a consequence of which a distribution arises or accrues to that stock buyer from those qualifying securities or that equivalent stock,<\/p>\n<p>except where &#8211;<\/p>\n<p>(I)the stock seller would be entitled &#8211;<\/p>\n<p>(A)to a repayment of any tax withheld from the distribution, or<\/p>\n<p>(B)to receive the distribution without the deduction of tax,<\/p>\n<p>under any provision of the Tax Acts or under arrangements made with another territory having the force of law by virtue of section 826(1), had that stock seller not entered into the financial transaction and received that distribution directly, and<\/p>\n<p>(II)the distribution is in the form of cash,<\/p>\n<p>(b)a financial transaction &#8211;<\/p>\n<p>(i)pursuant to which a stock buyer holds qualifying securities, and<\/p>\n<p>(ii)as a consequence of which interest arises or accrues to that stock buyer from those securities,<\/p>\n<p>except where &#8211;<\/p>\n<p>(I)the stock seller would be entitled &#8211;<\/p>\n<p>(A)to a repayment of any tax withheld from the interest, or<\/p>\n<p>(B)to receive the interest without deduction of tax,<\/p>\n<p>under any provision of the Tax Acts or under arrangements made with another territory having the force of law by virtue of section 826(1), had that stock seller not entered into the financial transaction and received that interest directly, or<\/p>\n<p>(II)neither the stock seller nor the stock buyer would be entitled to receive a payment of interest without deduction of tax under section 246 and, where such tax is deducted, neither the stock seller nor the stock buyer would be entitled to a repayment of any such tax withheld or any part thereof.<\/p>\n<p>(2)Where this Chapter applies, in applying the Tax Acts and the Capital Gains Tax Acts to a financial transaction, regard shall be had to the substance of the financial transaction, rather than to its legal form, such that &#8211;<\/p>\n<p>(a)the disposal and subsequent reacquisition of qualifying securities, or equivalent stock thereof, pursuant to the financial transaction shall not be treated as a disposal or an acquisition for the purposes of the Capital Gains Tax Acts,<\/p>\n<p>(b)any income, profits or gains, including fees, margins, profits or other financial gain arising or accruing to a stock seller or a stock buyer, either directly or indirectly, pursuant to &#8211;<\/p>\n<p>(i)the financial transaction, and<\/p>\n<p>(ii)in a case in which the financial transaction comprises a stock transfer, the corresponding repurchase agreement,<\/p>\n<p>shall be treated as if that income, those profits or those gains, as the case may be, arose from the lending of money, or money&#8217;s worth, at interest, and<\/p>\n<p>(c)any manufactured payment shall be &#8211;<\/p>\n<p>(i)deductible in accordance with section 753C(2) and (3), and<\/p>\n<p>(ii)charged to tax in accordance with section 753C(5) and (6).<\/p>\n<p>753C.<\/p>\n<h4>Payment and receipt of dividends or interest and manufactured payments under a stock borrowing or repurchase agreement.<\/h4>\n<p>(1)In this section, &#8216;specified amount&#8217; refers to an amount of interest or distribution arising or accruing to a stock buyer in respect of qualifying securities, or equivalent stock, held by the stock buyer pursuant to a financial transaction.<\/p>\n<p>(2)Subject to subsection (3), in charging a specified amount to tax &#8211;<\/p>\n<p>(a)a deduction shall be available for any corresponding manufactured payment paid, and<\/p>\n<p>(b)such deduction shall not exceed the specified amount received following the application of Schedule 24, but prior to the application of Schedule 2.<\/p>\n<p>(3)A manufactured payment shall not be deductible &#8211;<\/p>\n<p>(a)where the stock buyer is exempt from tax in respect of the corresponding specified amount,<\/p>\n<p>(b)where no amount of tax payable, within the meaning of section 959A, would arise in respect of the corresponding specified amount following the application of Schedule 24, or<\/p>\n<p>(c)against any amounts other than the corresponding specified amount.<\/p>\n<p>(4)Where the specified amount is in excess of the amount of any corresponding manufactured payment paid, then, notwithstanding Part 2, section 129, section 129A or section 138, that excess amount shall be charged to tax pursuant to section 753B(2)(b).<\/p>\n<p>(5)Subject to subsection (6), a stock seller shall be charged to tax in respect of a manufactured payment arising or accruing as if the corresponding specified amount had been received directly by that stock seller.<\/p>\n<p>(6)Where the amount of the manufactured payment made by the stock buyer is in excess of the amount of the corresponding specified amount received by the stock buyer, net of any foreign withholding tax but prior to the application of Schedule 2, then the stock seller shall be chargeable to tax under Case IV of Schedule D in respect of that excess amount.<\/p>\n<p>753D.<\/p>\n<h4>Refund of dividend withholding tax.<\/h4>\n<p>(1)This section shall apply to a financial transaction where &#8211;<\/p>\n<p>(a)a distribution is paid to a stock buyer pursuant to a stock borrowing or the repurchase agreement in respect of a stock transfer,<\/p>\n<p>(b)the corresponding stock return for that stock borrowing or stock transfer has taken place,<\/p>\n<p>(c)the distribution received by the stock buyer pursuant to the stock borrowing or repurchase agreement was subject to dividend withholding tax,<\/p>\n<p>(d)the stock seller would have been entitled &#8211;<\/p>\n<p>(i)to a repayment of the dividend withholding tax referred to in paragraph (c), or<\/p>\n<p>(ii)to receive the distribution without deduction of that dividend withholding tax,<\/p>\n<p>had that stock seller not entered into the financial transaction and received that distribution directly,<\/p>\n<p>(e)the stock seller has not been compensated by the stock buyer, or a party connected to that stock buyer, for the dividend withholding tax referred to in paragraph (c), or any part of that dividend withholding tax, and<\/p>\n<p>(f)the stock buyer is not entitled under &#8211;<\/p>\n<p>(i)section 831,<\/p>\n<p>(ii)an arrangement having the force of law by virtue of section 826(1),<\/p>\n<p>(iii)Schedule 24, or<\/p>\n<p>(iv)any other provision (including under the law of a territory other than the State),<\/p>\n<p>to a repayment, credit, deduction or other relief for the dividend withholding tax referred to in paragraph (c) or any part of that dividend withholding tax.<\/p>\n<p>(2)Where this section applies, the stock seller may make a claim for a repayment of the dividend withholding tax referred to in subsection (1)(c), subject to providing &#8211;<\/p>\n<p>(a)confirmation that the stock buyer received a distribution under a stock borrowing or repurchase agreement, and that dividend withholding tax was withheld from the amount of that distribution,<\/p>\n<p>(b)a signed declaration from the stock buyer that the stock seller is not entitled to any repayment, credit, deduction or similar in respect of that dividend withholding tax,<\/p>\n<p>(c)confirmation that the stock seller &#8211;<\/p>\n<p>(i)was the owner of the qualifying securities (including any equivalent stock) &#8211;<\/p>\n<p>(I)immediately prior to the financial transaction, and<\/p>\n<p>(II)immediately following the financial transaction,<\/p>\n<p>(ii)would have received the distribution directly had the stock borrowing or repurchase agreement not been entered into, and<\/p>\n<p>(iii)would have been entitled to &#8211;<\/p>\n<p>(I)a repayment of that dividend withholding tax, or<\/p>\n<p>(II)to receive the distribution without the deduction of that dividend withholding tax,<\/p>\n<p>had the distribution been received directly by that stock seller,<\/p>\n<p>(d)a statement referred to in section 172I(1) or (1A),<\/p>\n<p>(e)the appropriate declaration made under Schedule 2A, and<\/p>\n<p>(f)any other information or documentation the Revenue Commissioners may consider appropriate to validate the claim.<\/p>\n<p>753E.<\/p>\n<h4>Anti-avoidance.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;the Acts&#8217; means &#8211;<\/p>\n<p>(a)the Tax Acts,<\/p>\n<p>(b)the Capital Gains Tax Acts,<\/p>\n<p>(c)the Act of 1999, and the enactments amending or extending that Act, and<\/p>\n<p>(d)the Value-Added Tax Consolidation Act 2010, and the enactments amending or extending that Act,<\/p>\n<p>and any instrument made thereunder and any instrument that is made under any other enactment and which relates to those Acts;<\/p>\n<p>&#8216;tax advantage&#8217; has the same meaning as it has in section 811C;<\/p>\n<p>&#8216;transaction period&#8217; means the period after &#8211;<\/p>\n<p>(a)qualifying securities have been obtained from a lender under a stock borrowing, or<\/p>\n<p>(b)a stock transfer has taken place under a repurchase agreement,<\/p>\n<p>but before the corresponding stock return has taken place.<\/p>\n<p>(2)This Chapter shall not apply to a financial transaction, unless it would be reasonable to consider that the financial transaction &#8211;<\/p>\n<p>(a)has been undertaken for bona fide commercial reasons, and<\/p>\n<p>(b)does not form part of any arrangement or scheme of which the main purpose, or one of the main purposes, is the avoidance of tax.<\/p>\n<p>(3)Notwithstanding subsection 753B(2)(a), when determining the capital, voting rights or entitlement to assets, whether on a winding up or in any other circumstances, held by a party to a financial transaction for the purposes of any provision of the Acts during a transaction period, regard shall be had to the &#8211;<\/p>\n<p>(a)capital,<\/p>\n<p>(b)voting rights, and<\/p>\n<p>(c)entitlement to assets, whether on a winding up or in any other circumstances,<\/p>\n<p>of each party to the financial transaction concerned, as the case may be &#8211;<\/p>\n<p>(i)immediately prior to the time at which &#8211;<\/p>\n<p>(I)qualifying securities have been obtained from the lender under the stock borrowing concerned, or<\/p>\n<p>(II)the stock transfer has taken place under the repurchase agreement concerned,<\/p>\n<p>as the case may be, and<\/p>\n<p>(ii)during the transaction period,<\/p>\n<p>such that the capital, voting rights or entitlement to assets, whether on a winding up or in any other circumstances, held by that party for that transaction period shall be the amount that does not give rise to a tax advantage for that party to the financial transaction or a person connected to that party.<\/p>\n<p>753F.<\/p>\n<h4>Records.<\/h4>\n<p>(1)Subject to subsection (2), a qualifying institution shall maintain a separate record of each financial transaction, for a period of 6 years from the date of the stock return concerned, which shall include, at a minimum &#8211;<\/p>\n<p>(a)the name and address of both parties to the financial transaction,<\/p>\n<p>(b)the agreement underlying the financial transaction and any documentation in respect of any associated agreements, arrangements or transactions,<\/p>\n<p>(c)the type, nominal value, description and amount of the qualifying securities, including any equivalent stock, transferred under the financial transaction,<\/p>\n<p>(d)the date on which &#8211;<\/p>\n<p>(i)qualifying securities have been obtained from the lender under the stock borrowing concerned, or<\/p>\n<p>(ii)the stock transfer has taken place under the repurchase agreement concerned,<\/p>\n<p>as the case may be,<\/p>\n<p>(e)the date of the stock return,<\/p>\n<p>(f)details of any manufactured payments arising pursuant to the financial transaction,<\/p>\n<p>(g)details of any interest rate or rate of return applicable to the financial transaction, and<\/p>\n<p>(h)details of the fees, profits, margins or other financial gain accruing, charged or expected to arise pursuant to the financial transaction.<\/p>\n<p>(2)Where a qualifying institution is &#8211;<\/p>\n<p>(a)an investment undertaking,<\/p>\n<p>(b)a pension scheme, or<\/p>\n<p>(c)a scheme referred to in paragraph (d) of the definition of &#8216;qualifying institution&#8217; in section 753A,<\/p>\n<p>the record referred to in subsection (1) shall be maintained by a person who is authorised to act on behalf of, or for the purposes of, the qualifying institution and habitually so acts in that capacity.<\/p>\n<p>Part 36A<\/p>\n<h4>Special savings incentive accounts (ss. 848B-848U)<\/h4>\n<p>848B.<\/p>\n<h4>Interpretation.<\/h4>\n<p>(1)In this Part &#8211;<\/p>\n<p>&#8220;deposit account&#8221; means an account beneficially owned by an individual, which is &#8211;<br \/>\n(a)an account into which a deposit (within the meaning of section 256(1)) is made, or<br \/>\n(b)an account with a relevant European institution into which repayable funds are lodged;<\/p>\n<p>&#8220;investment undertaking&#8221; has the meaning assigned to it in section 739B and &#8216;units in an investment undertaking&#8217; shall be construed accordingly;<\/p>\n<p>&#8220;PPS Number&#8221; in relation to an individual, means that individual&#8217;s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;<\/p>\n<p>&#8220;qualifying assets&#8221; subject to section 848G, means &#8211;<br \/>\n(a)deposit accounts,<br \/>\n(b)shares within the meaning of section 2(1) of the Credit Union Act, 1997,<br \/>\n(c)units in an investment undertaking,<br \/>\n(d)units in, or shares of, a relevant UCITS,<br \/>\n(e)relevant life assurance policies,<br \/>\n(f)shares issued by a company, wherever incorporated, officially listed on a recognised stock exchange, and<br \/>\n(g)securities issued by or on behalf of a government;<\/p>\n<p>&#8220;qualifying individual&#8221; means an individual who at the time of opening a special savings incentive account &#8211;<br \/>\n(a)is 18 years of age, or older, and<br \/>\n(b)is resident in the State;<\/p>\n<p>&#8220;qualifying savings manager&#8221; means &#8211;<br \/>\n(a)a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971, or a person who holds a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,<br \/>\n(b)a building society within the meaning of section 256,<br \/>\n(c)a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989,<br \/>\n(d)ACC Bank plc,<br \/>\n(e)the Post Office Savings Bank,<br \/>\n(f)a credit union within the meaning of the Credit Union Act, 1997,<br \/>\n(g)an investment undertaking,<br \/>\n(h)the holder of &#8211;<br \/>\n(i)an authorisation issued by the Minister for Enterprise, Trade and Employment under the European Communities (Life Assurance) Regulations of 1984 (S.I. No. 57 of 1984), as amended, or,<br \/>\n(ii)an authorisation granted by the authority charged by law with the duty of supervising the activities of insurance undertakings in a Member State of the European Communities, other than the State, in accordance with Article 6 of Directive No. 79\/267\/EEC [Note: O.J. No. L63 of 13 March, 1979, P.1.], who is carrying on the business of life assurance in the State, or<br \/>\n(iii)an official authorisation to undertake insurance in Iceland, Liechtenstein and Norway pursuant to the EEA Agreement within the meaning of the European Communities (Amendment) Act, 1993, and who is carrying on the business of life assurance in the State,<br \/>\n(i)a person which is an authorised member firm of the Irish Stock Exchange, within the meaning of the Stock Exchange Act, 1995, or a member firm (which carries on a trade in the State through a branch or agency) of a stock exchange of any other Member State of the European Communities,<br \/>\n(j)a firm approved under section 10 of the Investment Intermediaries Act, 1995, which is authorised to hold client money, other than a firm authorised as a Restricted Activity Investment Product Intermediary, where the firm&#8217;s authorisation permits it to engage in the proposed activities, or a business firm which has been authorised to provide similar investment business services under the laws of a Member State of the European Communities which correspond to that Act, or<br \/>\n(k)the Minister for Finance, acting through the Agency (within the meaning of section (1) of the National Treasury Management Agency Act, 1990);<\/p>\n<p>&#8220;relevant European institution&#8221; means an institution which is a credit institution (within the meaning of the European Communities (Licensing and Supervision of Credit Institutions) Regulations, 1992 (S.I. No. 395 of 1992)) which has been authorised by the Central Bank of Ireland to carry on business of a credit institution in accordance with the provisions of the supervisory enactments (within the meaning of those Regulations);<\/p>\n<p>&#8220;relevant UCITS&#8221; means a UCITS situated in a Member State of the European Communities, other than the State, which has been authorised by the competent authorities of the Member State in which it is situated;<\/p>\n<p>&#8220;relevant life assurance policy&#8221; means a policy of assurance which satisfies the conditions specified in subsection (3);<\/p>\n<p>&#8220;special savings incentive account&#8221; has the meaning assigned to it in section 848C;<\/p>\n<p>&#8220;tax credit&#8221; in relation to a subscription, has the meaning assigned to it in section 848D(1);<\/p>\n<p>&#8220;UCITS&#8221; means undertakings for collective investment in transferable securities within the meaning of Article 1 of Council Directive 85\/611 [Note: O.J. No. L375 of 31 December, 1985, P.3.] and references to &#8211;<br \/>\n(a)&#8217;the Member State in which UCITS is situated&#8217; and<br \/>\n(b)a UCITS which has been &#8216;authorised by the competent authorities of the Member State in which it is situated&#8217;,<br \/>\nshall have the same meanings as in Articles 3 and 4 respectively of that Directive;<\/p>\n<p>&#8220;units in, or shares of, a relevant UCITS&#8221; means the rights or interests (however described) of the holder of units or shares in that relevant UCITS.<\/p>\n<p>(2)Nothing in this Part shall be construed as authorising or permitting a person who is a qualifying savings manager to provide any services which that person would not otherwise be authorised or permitted to provide in the State.<\/p>\n<p>(3)The conditions referred to in the definition of &#8216;relevant life assurance policy&#8217; in subsection (1) are that the policy of assurance is on the life of a person who beneficially owns the policy, and that the terms and conditions of the policy provide &#8211;<\/p>\n<p>(a)for an express prohibition of any transfer of the policy, or the rights conferred by the policy or any share or interest in the policy or rights respectively, other than the cash proceeds from the termination of the policy or a partial surrender of the rights conferred by the policy, to that person,<\/p>\n<p>(b)the policy, the rights conferred by the policy and any share or interest in the policy or rights respectively, shall not be capable of assignment, other than that the proceeds on the termination of the policy (other than on the death of the policyholder) may be transferred from a qualifying savings manager to another qualifying savings manager in accordance with the provisions of this Part, and<\/p>\n<p>(c)the policy is not issued in the course of annuity business or pension business, within the meaning of section 706.<\/p>\n<p>848C.<\/p>\n<h4>Special savings incentive account.<\/h4>\n<p>A special savings incentive account is a scheme of investment commenced on or after 1 May 2001 and on or before 30 April 2002 by a qualifying individual with a qualifying savings manager (who is registered in accordance with section 848R) under terms which include the following &#8211;<\/p>\n<p>(a)apart from tax credits, in relation to subscriptions, subscribed by the qualifying savings manager under section 848E(1)(b)(ii) only the qualifying individual, or the spouse of that individual, may subscribe to the account,<\/p>\n<p>(b)such subscriptions are funded by the qualifying individual, or the spouse of that individual, from funds available to either or both of them out of their own resources without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums already borrowed,<\/p>\n<p>(c)subject to paragraph (d), such subscriptions, ignoring any amounts withdrawn from the account by the qualifying individual &#8211;<\/p>\n<p>(i)in the month the account is commenced and in each of the 11 months immediately after that month, are of an amount agreed between the qualifying individual and the qualifying savings manager when the account is commenced, which amount shall not be less than \u20ac12.50, and<\/p>\n<p>(ii)in any one month, do not exceed \u20ac254,<\/p>\n<p>(d)such subscriptions, made in the month which is the month in which the fifth anniversary of the day of commencing the account falls, or thereafter, shall not be subscriptions for the purposes of section 848D,<\/p>\n<p>(e)such subscriptions and tax credits, in relation to such subscriptions, are to be used, and used only, by the qualifying savings manager to acquire qualifying assets which &#8211;<\/p>\n<p>(i)are held in the account and managed by the qualifying savings manager, and<\/p>\n<p>(ii)are beneficially owned by the qualifying individual,<\/p>\n<p>(f)all or any of the qualifying assets can not be assigned or otherwise pledged, as security for a loan,<\/p>\n<p>(g)on commencing the account, the qualifying individual makes a declaration of a kind referred to in section 848F,<\/p>\n<p>(h)for the account to be treated as maturing (otherwise than in respect of the death of the qualifying individual) in accordance with section 848H(1), the qualifying individual shall make a declaration of a kind referred to in section 848I at any time within the period of 3 months ending on the fifth anniversary of the end of the month in which a subscription was first made to the account,<\/p>\n<p>(i)that at the request of the qualifying individual, and within such time as shall be agreed, the account, with all rights and obligations of the parties thereto may be transferred to another qualifying savings manager in accordance with the provisions of this Part,<\/p>\n<p>(j)that the qualifying savings manager will notify the qualifying individual if he or she ceases to be a qualifying savings manager, or ceases to be registered in accordance with section 848R, and<\/p>\n<p>(k)that the qualifying savings manager will take reasonable measures &#8211;<\/p>\n<p>(i)to establish that the PPS Number, contained in the declaration referred to in paragraph (g), made by a qualifying individual, is the PPS Number in relation to that individual, and<\/p>\n<p>(ii)to ensure that the terms, provided for in this section, under which the account is commenced are and continue to be complied with, and<\/p>\n<p>(l)that the qualifying savings manager will retain a copy of all material used to establish the correctness of each PPS Number contained in a declaration in accordance with paragraph (k)(i), for so long as the declaration is required to be retained under section 848R(11) and on being so required by an inspector, will make such material available for inspection.<\/p>\n<p>848D.<\/p>\n<h4>Tax credits.<\/h4>\n<p>Where a qualifying individual, or the spouse of that individual, subscribes to a special savings incentive account &#8211;<\/p>\n<p>(a)the qualifying individual shall be treated, for the purposes of the Tax Acts, as having paid a grossed up amount, which amount, after deducting income tax at the standard rate for the year of assessment 2001, leaves the amount of the subscription, and<\/p>\n<p>(b)the qualifying individual shall be entitled to be credited with the amount of income tax (in this Part referred to as the &#8216;tax credit&#8217;, in relation to the subscription) treated as having been so deducted, in accordance with the provisions of this Part and not under any other provision of the Tax Acts.<\/p>\n<p>848E.<\/p>\n<h4>Payment of tax credit.<\/h4>\n<p>(1)Where a qualifying individual subscribes to a special savings incentive account, and the qualifying savings manager of that account complies with the provisions of section 848P in relation to that subscription &#8211;<\/p>\n<p>(a)the Revenue Commissioners shall, subject to that section, pay to the qualifying savings manager the tax credit in relation to that subscription, and<\/p>\n<p>(b)that tax credit shall &#8211;<\/p>\n<p>(i)be beneficially owned by the qualifying individual, and<\/p>\n<p>(ii)on receipt, be immediately subscribed by the qualifying savings manager to the special savings incentive account.<\/p>\n<p>(2)Subject to this Part, exemption from income tax and capital gains tax shall be allowed in respect of the income and chargeable gains arising in respect of qualifying assets held in a special savings incentive account.<\/p>\n<p>(3)A deposit (within the meaning of section 256(1)) made to a deposit account which is a qualifying asset, shall not be a relevant deposit (within the meaning of that section) for the purposes of Chapter 4 of Part 8.<\/p>\n<p>(3A)The provisions of section 267B(2) shall not apply to shares held in a special share account (within the meaning of section 267A) where the shares are a qualifying asset.<\/p>\n<p>(4)Notwithstanding subsection (2), where in a year of assessment an individual commences a special savings incentive account, the individual is obliged to include in a return, required to be delivered by the individual under section 951, or as the case may be, section 879, in respect of that year of assessment, a statement to the effect that the individual has commenced such an account.<\/p>\n<p>848F.<\/p>\n<h4>Declaration on commencement.<\/h4>\n<p>The declaration referred to in section 848C(g) is a declaration in writing made by the qualifying individual to the qualifying savings manager which &#8211;<\/p>\n<p>(a)is made and signed by the qualifying individual,<\/p>\n<p>(b)is made in such form &#8211;<\/p>\n<p>(i)as may be prescribed or authorised by the Revenue Commissioners, and<\/p>\n<p>(ii)which contains a reference to the offence of making a false declaration under section 848T,<\/p>\n<p>(c)contains the qualifying individual&#8217;s &#8211;<\/p>\n<p>(i)name,<\/p>\n<p>(ii)address of his or her permanent residence,<\/p>\n<p>(iii)PPS Number, and<\/p>\n<p>(iv)date of birth,<\/p>\n<p>(d)declares at the time the declaration is made, that the qualifying individual &#8211;<\/p>\n<p>(i)is resident in the State,<\/p>\n<p>(ii)has not commenced another special savings incentive account,<\/p>\n<p>(iii)is the person who will beneficially own the qualifying assets to be held in the account,<\/p>\n<p>(iv)will subscribe to the account from funds available to him or her, or his or her spouse, from their own resources, without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums already borrowed, and<\/p>\n<p>(v)will not assign or otherwise pledge qualifying assets to be held in the account as security for a loan,<\/p>\n<p>and<\/p>\n<p>(e)contains an undertaking that if at any time the declaration ceases to be materially correct, the qualifying individual will advise the qualifying savings manager accordingly.<\/p>\n<p>848G.<\/p>\n<h4>Acquisition of qualifying assets.<\/h4>\n<p>(1)Qualifying assets held in a special savings incentive account, managed by a qualifying savings manager and beneficially owned by a qualifying individual may not at any time &#8211;<\/p>\n<p>(a)be purchased (or otherwise acquired) by the qualifying savings manager, otherwise than &#8211;<\/p>\n<p>(i)out of money which the qualifying savings manager holds in the account, and<\/p>\n<p>(ii)by way of a bargain made at arm&#8217;s length,<\/p>\n<p>(b)be purchased from the qualifying individual or any person connected with that individual (within the meaning of section 10), or<\/p>\n<p>(c)be connected with any other asset or liability of the qualifying individual or any other person connected with that individual (within the meaning of section 10) and for this purpose a qualifying asset is connected with another asset or a liability if the terms under which either asset or the liability is acquired and held would be different if the qualifying asset, the other asset or the liability, had not been acquired and held.<\/p>\n<p>(2)Shares fulfil the condition as to official listing in paragraph (f) of the definition of &#8216;qualifying assets&#8217; in section 848B(1) if in pursuance of a public offer, a qualifying savings manager applies for the allotment or allocation to him or her of shares in a company which are due to be admitted to such listing within 30 days of the allocation or allotment, and which, when admitted to such a listing, would be qualifying assets.<\/p>\n<p>848H.<\/p>\n<h4>Termination of special savings incentive account.<\/h4>\n<p>(1)A special savings incentive account is treated as maturing &#8211;<\/p>\n<p>(a)on the fifth anniversary of the end of the month in which a subscription was first made to the account where the qualifying individual has made a declaration of a kind referred to in section 848I and the qualifying savings manager is in possession of that declaration at that time, or,<\/p>\n<p>(b)on the day of the death of the qualifying individual,<\/p>\n<p>whichever event first occurs.<\/p>\n<p>(2)A special savings incentive account is treated as ceasing, where at any time before the account is treated as maturing &#8211;<\/p>\n<p>(a)any of the terms referred to in section 848C are not complied with, or<\/p>\n<p>(b)the qualifying individual is neither resident nor ordinarily resident in the State.<\/p>\n<p>(3)Where a special savings incentive account is treated as maturing or ceasing &#8211;<\/p>\n<p>(a)the account thereafter shall not be a special savings incentive account for the purposes of section 848E, and<\/p>\n<p>(b)the assets remaining in the account after having regard to all liabilities to tax on gains treated as accruing to the account under this Part shall &#8211;<\/p>\n<p>(i)where the assets are shares, securities, or units in, or shares of, a relevant UCITS, be treated for the purposes of the Capital Gains Tax Acts, as having been acquired by the qualifying individual at their then market value at that time,<\/p>\n<p>(ii)where the asset is a relevant life assurance policy, be treated as if it were a policy commenced at that time and in respect of which premiums in an amount equal to the market value of the policy at that time had been paid at that time, for the purposes of Chapter 5 of Part 26, and<\/p>\n<p>(iii)where the asset is units in an investment undertaking, be treated as if the units had been acquired at that time, for their market value at that time, for the purposes of Chapter IA of Part 27.<\/p>\n<p>(4)Where at any time a special savings incentive account is treated as maturing or, as the case may be, ceasing, the amount of any income which accrues in respect of qualifying assets held in the account, in so far as it was not, but for this subsection, taken into account in determining a gain under section 848J, 848K or 848L, shall, when received, be treated as an amount of cash withdrawn from the account before the account is treated as maturing, or as the case may be, ceasing, and the qualifying savings manager shall be liable to tax in accordance with section 848M on the gain thereby arising under section 848L.<\/p>\n<p>(5)Where a special savings incentive account is treated as maturing and the qualifying individual so requires for the purposes of Part 36B, the qualifying savings manager shall issue to the qualifying individual a &#8216;maturity statement&#8217;, in relation to the account, being a statement which specifies &#8211;<\/p>\n<p>(a)the name and address of the qualifying individual,<\/p>\n<p>(b)the PPS Number of the qualifying individual,<\/p>\n<p>(c)the maturity date in relation to the account, being the date on which the account was treated as maturing,<\/p>\n<p>(d)the gross funds in relation to the account, being the value of the assets in the account immediately before the maturity date,<\/p>\n<p>(e)the maturity tax in relation to the account, being the liability to tax on gains treated as accruing to the account on the maturity date,<\/p>\n<p>(f)the net funds in relation to the account, being the value of the assets remaining in the account immediately after the maturity date and the maturity tax discharged, and<\/p>\n<p>(g)the name and address of the qualifying savings manager.<\/p>\n<p>848I.<\/p>\n<h4>Declaration on maturity.<\/h4>\n<p>The declaration referred to in section 848C(h) is a declaration in writing made by the qualifying individual to the qualifying savings manager which &#8211;<\/p>\n<p>(a)is made and signed by the qualifying individual,<\/p>\n<p>(b)is made in such form &#8211;<\/p>\n<p>(i)as may be prescribed or authorised by the Revenue Commissioners, and<\/p>\n<p>(ii)which contains a reference to the offence of making a false declaration under section 848T,<\/p>\n<p>(c)contains the qualifying individual&#8217;s &#8211;<\/p>\n<p>(i)name,<\/p>\n<p>(ii)address of his or her permanent residence,<\/p>\n<p>(iii)PPS Number, and<\/p>\n<p>(iv)date of birth,<\/p>\n<p>(d)declares that at all times in the period from which the account was commenced until the date the declaration is made, the qualifying individual &#8211;<\/p>\n<p>(i)was the beneficial owner of the qualifying assets held in the account,<\/p>\n<p>(ii)had only one special savings incentive account,<\/p>\n<p>(iii)was resident or ordinarily resident in the State,<\/p>\n<p>(iv)subscribed to the account from funds available to the qualifying individual or his or her spouse without recourse to borrowing, or the deferral of repayment (whether of capital or interest) of sums borrowed when the account was commenced, and<\/p>\n<p>(v)did not assign or otherwise pledge qualifying assets held in the account as security for a loan.<\/p>\n<p>848J.<\/p>\n<h4>Gain on maturity.<\/h4>\n<p>(1)On the day on which a special savings incentive account is treated as maturing, a gain shall be treated as accruing on the account in an amount determined under subsection (2).<\/p>\n<p>(2)The amount of the gain referred to in subsection (1) is an amount equal to the aggregate market value of all assets (including cash) held in the account on the day the account is treated as maturing, less the sum of all subscriptions (including subscriptions made by the qualifying savings manager under section 848E(1)(b)(ii)), made to the account on or before that day to the extent that they have not previously been treated, in accordance with subsection (3), as having been withdrawn from the account.<\/p>\n<p>(3)For the purposes of subsection (2) where there is a withdrawal from an account, the amount withdrawn (before being reduced by any tax liability arising under this Part in respect of any gain treated as accruing to the account as a result of the withdrawal) shall be treated as a withdrawal of subscriptions to the extent that the amount withdrawn does not exceed the total amount of subscriptions (including subscriptions made by the qualifying savings manager in accordance with section 848E(1)(b)(ii)) made to the account since commencement, reduced by the amount of such subscriptions previously treated as subscriptions withdrawn from the account under this subsection.<\/p>\n<p>(4)For the purposes of subsection (3) where there is a withdrawal of assets (other than cash) from an account the amount withdrawn shall be the amount which is the market value of those assets at the time of their withdrawal.<\/p>\n<p>848K.<\/p>\n<h4>Gain on cessation.<\/h4>\n<p>(1)On the day on which a special savings incentive account is treated as ceasing, a gain shall be treated as accruing on the account in an amount determined under subsection (2).<\/p>\n<p>(2)The amount of the gain referred to in subsection (1) is an amount equal to the aggregate market value of all assets (including cash) held in the account on the day the account is treated as ceasing.<\/p>\n<p>848L.<\/p>\n<h4>Gain on withdrawal.<\/h4>\n<p>(1)Where before a special savings incentive account is treated as maturing or ceasing (as the case may be) a qualifying individual withdraws cash or other assets from the account, a gain shall be treated as accruing on the account in an amount determined under subsection (2).<\/p>\n<p>(2)The amount of the gain referred to in subsection (1) is &#8211;<\/p>\n<p>(a)where the withdrawal is in cash, the amount of that cash, and<\/p>\n<p>(b)where the withdrawal is of assets (other than cash) an amount equal to the market value of such assets on the day of withdrawal.<\/p>\n<p>848M.<\/p>\n<h3>Taxation of gains.<\/h3>\n<p>(1)A qualifying savings manager shall be liable to tax (in this Part referred to as &#8216;relevant tax&#8217;) representing income tax on a gain treated under this Part as accruing to a special savings incentive account in an amount equal to 23 per cent of the amount of that gain.<\/p>\n<p>(2)A qualifying savings manager who becomes liable under subsection (1) to an amount of relevant tax shall be entitled to withdraw sufficient funds from the account to which the gain is treated as accruing to satisfy that liability and the qualifying individual shall allow such withdrawal; but where there are no funds or insufficient funds available in the account out of which the qualifying savings manager may satisfy, or fully satisfy, such liability, the amount of relevant tax for which there are insufficient funds so available shall be a debt due to the qualifying savings manager from the qualifying individual.<\/p>\n<p>(3)Subject to section 848P, the relevant tax in respect of a gain which in accordance with that section, is required to be included in a return, shall be due at the time by which the return is to be made and shall be paid by the qualifying fund manager without the making of an assessment; but relevant tax which has become so due may be assessed on the qualifying savings manager (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.<\/p>\n<p>(4)Where it appears to the inspector that there is any amount of relevant tax which ought to have been, but has not been, included in a return, or where the inspector is dissatisfied with any return, the inspector may make an assessment on the qualifying savings manager to the best of the inspector&#8217;s judgement, and any amount of relevant tax due under an assessment made by virtue of this subsection shall be treated for the purposes 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.<\/p>\n<p>(5)<\/p>\n<p>(a)Any relevant tax assessed on a qualifying savings manager under this Chapter shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under subsection (3)) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under subsection (3).<\/p>\n<p>(b)On the determination of an appeal against an assessment under this section any relevant tax overpaid shall be repaid.<\/p>\n<p>(6)<\/p>\n<p>(a)The provisions of the Income Tax Acts relating to &#8211;<\/p>\n<p>(i)assessments to income tax,<\/p>\n<p>(ii)appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and<\/p>\n<p>(iii)the collection and recovery of income tax,<\/p>\n<p>shall, in so far as they are applicable, apply to the assessment, collection and recovery of relevant tax.<\/p>\n<p>(b)Any amount of relevant tax payable in accordance with this Part without the making of an assessment shall carry interest at the rate of 0.0322 per cent for each day or part of a day from the date when the amount becomes due and payable.<\/p>\n<p>(c)Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under section 1080.<\/p>\n<p>(d)In its application to any relevant tax charged by any assessment made in accordance with this section, section 1080 shall apply as if subsection (2)(b) of that section were deleted.<\/p>\n<p>848N.<\/p>\n<h4>Transfer of special savings incentive account.<\/h4>\n<p>(1)Where arrangements are made by a qualifying individual to transfer his or her special savings incentive account from one qualifying savings manager (in this section referred to as the &#8216;transferor&#8217;) to another qualifying savings manager (in this section referred to as the &#8216;transferee&#8217;) or the account is transferred in consequence of the transferor ceasing to act or to be a qualifying savings manager, the following provisions of this section shall apply.<\/p>\n<p>(2)Where a transfer takes place under subsection (1) &#8211;<\/p>\n<p>(a)all subscriptions to the special savings incentive account in so far as they have not been applied to acquire qualifying assets, and all qualifying assets in the account, must be made to a single transferee,<\/p>\n<p>(b)the qualifying individual shall make a declaration of a kind referred to in section 848O to the transferee, and<\/p>\n<p>(c)the transferee shall thereafter for the purposes of this Part be the qualifying savings manager of the special savings incentive account transferred.<\/p>\n<p>(3)The transferor shall within 30 days after the date of transfer &#8211;<\/p>\n<p>(a)give to the transferee a notice containing the information specified in subsection (4) and the declaration specified in subsection (5), and<\/p>\n<p>(b)pay to the transferee the aggregate of the amounts referred to in subsection (4)(b)(vi).<\/p>\n<p>(4)The information referred to in subsection (3) is &#8211;<\/p>\n<p>(a)as regards the qualifying individual his or her &#8211;<\/p>\n<p>(i)name,<\/p>\n<p>(ii)address of permanent residence,<\/p>\n<p>(iii)date of birth,<\/p>\n<p>(iv)PPS Number,<\/p>\n<p>and<\/p>\n<p>(b)as respects the special savings incentive account transferred pursuant to this section &#8211;<\/p>\n<p>(i)the date of transfer,<\/p>\n<p>(ii)the date the account was commenced,<\/p>\n<p>(iii)the identification of the assets held in the account,<\/p>\n<p>(iv)the total of all subscriptions made to the account by the qualifying individual, or the spouse of that individual,<\/p>\n<p>(v)the total of all tax credits, in relation to subscriptions, subscribed to the account,<\/p>\n<p>(vi)the amount of any dividends, and other amounts payable in respect of qualifying assets held in the account and amounts of tax credits, which have not been received by the transferor at the date of transfer, and<\/p>\n<p>(vii)the amount of each withdrawal from the account and the date of each such withdrawal.<\/p>\n<p>(5)The declaration referred to in subsection (3) is a declaration in writing made and signed by the transferor to the effect that &#8211;<\/p>\n<p>(a)the transferor has fulfilled all obligations under this Part,<\/p>\n<p>(b)the transferor has transferred to the transferee all money and qualifying assets held in the account and that where registration of any such transfer is required, the transferor has taken the necessary steps to ensure that those qualifying assets can be registered in the name of the transferee, and<\/p>\n<p>(c)that, to the best of the qualifying savings manager&#8217;s knowledge and belief, the information contained in the notice referred to in subsection (3) is correct.<\/p>\n<p>(6)Notwithstanding section 848C, where a special savings incentive account is being transferred in accordance with this section it shall not be treated as ceasing should, during the period of the transfer, the qualifying assets held in the account, temporarily cease to be managed by a qualifying savings manager, or a qualifying savings manager who is registered in accordance with section 848R.<\/p>\n<p>848O.<\/p>\n<h4>Declaration on transfer.<\/h4>\n<p>The declaration referred to in section 848N(2)(b) is a declaration in writing made by the qualifying individual to the qualifying savings manager who is the transferee referred to in that section, which &#8211;<\/p>\n<p>(a)is made and signed by the qualifying individual,<\/p>\n<p>(b)is made in such form &#8211;<\/p>\n<p>(i)as may be prescribed or authorised by the Revenue Commissioners, and<\/p>\n<p>(ii)which contains a reference to the offence of making a false declaration under section 848T.<\/p>\n<p>(c)contains the qualifying individual&#8217;s &#8211;<\/p>\n<p>(i)name,<\/p>\n<p>(ii)address of his or her permanent residence,<\/p>\n<p>(iii)PPS Number, and<\/p>\n<p>(iv)date of birth,<\/p>\n<p>and<\/p>\n<p>(d)declares &#8211;<\/p>\n<p>(i)at the time the declaration is made, that the qualifying individual &#8211;<\/p>\n<p>(I)has not commenced another special savings incentive account, and<\/p>\n<p>(II)is the person who beneficially owns the qualifying assets held in the account being transferred,<\/p>\n<p>(ii)at the time the special savings incentive account was commenced, the qualifying individual was resident in the State,<\/p>\n<p>(iii)that subscriptions to the account have been and will continue to be made from funds available to him or her, or his or her spouse, out of their own resources without recourse to borrowing, or the deferral of repayment (whether in respect of capital or interest) of sums borrowed when the account was commenced, and<\/p>\n<p>(iv)has not and will not assign or otherwise pledge qualifying assets held in the account as security for a loan.<\/p>\n<p>848P.<\/p>\n<h4>Monthly returns.<\/h4>\n<p>A qualifying savings manager who is or was registered in accordance with section 848R, shall, within 15 days of the end of every month, make a return (including, where it is the case, a nil return) to the Revenue Commissioners, which &#8211;<\/p>\n<p>(a)specifies in respect of all special savings incentive accounts managed by the qualifying savings manager in that month &#8211;<\/p>\n<p>(i)the aggregate amount of tax credits, in relation to the aggregate of subscriptions made to those accounts in that month,<\/p>\n<p>(ii)the aggregate amount of relevant tax to which the qualifying savings manager is liable in respect of gains treated as accuring on those accounts in that month, and<\/p>\n<p>(iii)the net amount (being the difference between the amounts specified in paragraphs (a) and (b)) due from or, as the case may be, to, the Revenue Commissioners,<\/p>\n<p>and<\/p>\n<p>(b)contains a declaration in a form prescribed or authorised by the Revenue Commissioners that, to the best of the qualifying savings manager&#8217;s knowledge and belief, the information referred to in paragraph (a) is correct.<\/p>\n<p>848Q. Annual returns.<br \/>\nA qualifying savings manager who is or was registered in accordance with section 848R shall in respect of each year of assessment, on or before 28 February in the year following the year of assessment, make a return (including, where it is the case, a nil return), to the Revenue Commissioners which in respect of the year of assessment &#8211;<\/p>\n<p>(a)specifies in respect of each special incentive savings account managed by the qualifying savings manager &#8211;<\/p>\n<p>(i)the name of the qualifying individual,<\/p>\n<p>(ii)the address of that individual&#8217;s permanent residence,<\/p>\n<p>(iii)the PPS Number of the individual,<\/p>\n<p>(iv)the date the account was commenced,<\/p>\n<p>(v)the total amount of subscriptions made by the qualifying individual, or the spouse of that individual, to the account,<\/p>\n<p>(vi)the total amount of tax credits, in respect of subscriptions, subscribed to the account, and<\/p>\n<p>(vii)in respect of each gain accuring on the account &#8211;<\/p>\n<p>(I)the amount of relevant tax to which the qualifying savings manager has thereby become liable, and<\/p>\n<p>(II)whether the gain accrued under section 848J, 848K or 848L.<\/p>\n<p>and<\/p>\n<p>(b)containing a declaration, in a form prescribed or authorised by the Revenue Commissioners, that to the best of the qualifying savings manager&#8217;s knowledge and belief &#8211;<\/p>\n<p>(i)in respect of each special savings incentive account referred to in the return, the terms referred to in section 848C have been and are being complied with, and<\/p>\n<p>(ii)the information referred to in paragraph (a) and the declaration referred to in subparagraph (i) is correct.<\/p>\n<p>848QA.<\/p>\n<h4>Other returns.<\/h4>\n<p>A qualifying savings manager, who is or was registered in accordance with section 848R, shall when so required by the Revenue Commissioners, make a return to them in an electronic format specified by them, which sets out, in relation to all of the special savings incentive accounts managed by the qualifying savings manager, or such category of those accounts as may be specified by the Revenue Commissioners, such details in relation to each account as the Revenue Commissioners may specify.<\/p>\n<p>&nbsp;<\/p>\n<p>848R.<\/p>\n<h4>Registration etc.<\/h4>\n<p>(1)A person can not be a qualifying savings manager unless the person is included in a register maintained by the Revenue Commissioners of persons registered in accordance with subsection (5).<\/p>\n<p>(2)Where at any time a qualifying savings manager does not have a branch or business establishment in the State, or has such a branch or business establishment but does not intend to carry out all the functions as a qualifying savings manager at that branch or business establishment, the qualifying savings manager shall not be registered in accordance with subsection (5) unless the qualifying savings manager appoints for the time being a person, who &#8211;<\/p>\n<p>(a)where an individual, is resident in the State, and<\/p>\n<p>(b)where not an individual, has a business establishment in the State,<\/p>\n<p>to be responsible for securing the discharge of the obligations which fall to be discharged by the qualifying savings manager under this Part, and advises the Revenue Commissioners of the identity of that person and the fact of that person&#8217;s appointment.<\/p>\n<p>(3)Where a person has been appointed in accordance with subsection (2), and subject to subsection (4) that person shall &#8211;<\/p>\n<p>(a)be entitled to act on the qualifying savings manager&#8217;s behalf for any of the purposes of the provisions of this Part,<\/p>\n<p>(b)shall secure (where appropriate by acting on the qualifying savings manager&#8217;s behalf) the qualifying savings manager&#8217;s compliance with and discharge of the obligations under this Part, and<\/p>\n<p>(c)shall be personally liable in respect of any failure of the qualifying savings manager to comply with or discharge any such obligations as if the obligations imposed on the qualifying savings manager were imposed jointly and severally on the qualifying savings manager and the person concerned.<\/p>\n<p>(4)The appointment of a person in accordance with subsection (2) shall be treated as terminated in circumstances where &#8211;<\/p>\n<p>(a)the Revenue Commissioners have reason to believe that the person concerned &#8211;<\/p>\n<p>(i)has failed to secure the discharge of any of the obligations imposed on a qualifying savings manager under this Part, or<\/p>\n<p>(ii)does not have adequate resources to discharge those obligations,<\/p>\n<p>and<\/p>\n<p>(b)the Revenue Commissioners have notified the qualifying savings manager and that person that they propose to treat the appointment of that person as having terminated with effect from the date of the notice.<\/p>\n<p>(5)If the Revenue Commissioners are satisfied that an applicant for registration is entitled to be registered, they shall register the applicant with effect from such date as may be specified by them.<\/p>\n<p>(6)If it appears to the Revenue Commissioners at any time that a qualifying savings manager who is registered under this section &#8211;<\/p>\n<p>(a)would not be entitled to be registered if it applied for registration at that time, or<\/p>\n<p>(b)has not complied with the provisions of this Part,<\/p>\n<p>the Revenue Commissioners may, by written notice given to the qualifying savings manager, cancel its registration with effect from such date as may be specified in the notice.<\/p>\n<p>(7)Any qualifying savings manager who is aggrieved by the failure of the Revenue Commissioners to register it or by the cancellation of its registration, may, by notice given to the Revenue Commissioners before the end of the period of 30 days beginning with the date on which the qualifying savings manager was notified of the Revenue Commissioners decision, require the matter to be determined by the Appeal Commissioners and the Appeal Commissioners shall hear and determine the matter in like manner as an appeal.<\/p>\n<p>(8)A qualifying savings manager shall give notice to the Revenue Commissioners and the qualifying individuals whose special savings incentive accounts he or she manages of his or her intention to cease to act as the qualifying savings manager not less than 30 days before he or she so ceases so that his or her obligations to the Revenue Commissioners can be conveniently discharged at or about the time he or she ceases to so act, and the notice to the qualifying individuals shall inform them of their right to transfer their special savings incentive accounts under section 848N.<\/p>\n<p>(9)Subject to subsection (10), every return to be made by a qualifying savings manager under section 848P and 848Q shall be made in electronic format approved by the Revenue Commissioners and shall be accompanied by a declaration made by the qualifying savings manager, in a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct.<\/p>\n<p>(10)Where the Revenue Commissioners are satisfied that a qualifying savings manager does not have the facilities to make a return under section 848P or 848Q in the format referred to in subsection (9), such returns shall be made in writing in a form prescribed or authorised by the Revenue Commissioners, and shall be accompanied by a declaration made by the qualifying savings manager, on a form prescribed or authorised for that purpose by the Revenue Commissioners, to the effect that the return is correct.<\/p>\n<p>(11)A qualifying savings manager shall retain &#8211;<\/p>\n<p>(a)in respect of each special savings incentive account which is treated as maturing, the declarations of a kind referred to in sections 848F, 848I and 848O for a period of 3 years after the date on which the account was treated as maturing, and<\/p>\n<p>(b)in respect of each special savings incentive account which is treated as ceasing, the declarations of a kind referred to in sections 848F and 848O for a period of 3 years after the date on which the account was treated as ceasing,<\/p>\n<p>and on being so required by notice given to him or her in writing by an inspector, make available for inspection all or any such declarations.<\/p>\n<p>848S.<\/p>\n<h4>Regulations.<\/h4>\n<p>(1)The Revenue Commissioners shall make regulations providing generally as to the administration of this Part and those regulations may, in particular and without prejudice to the generality of the foregoing include provisions &#8211;<\/p>\n<p>(a)as to the manner in which a qualifying savings manager is to register under section 848R,<\/p>\n<p>(b)as to the manner in which a return is to be made under section 848P,<\/p>\n<p>(c)as to the manner in which a return is to be made under section 848Q,<\/p>\n<p>(d)as to the manner in which tax credits are to be paid under section 848E(1), or the net amount referred to in section 848P(a)(iii),<\/p>\n<p>(e)as to the circumstances in which the Revenue Commissioners may require a qualifying savings manager to give a bond or guarantee to the Revenue Commissioners which is sufficient to indemnify the Commissioners against any loss arising by virtue of the fraud or negligence of the qualifying savings manager in relation to the operation of the provisions of this Part, and<\/p>\n<p>(f)as to the manner in which a qualifying savings manager ensures compliance with the terms of special savings incentive accounts provided for in section 848C.<\/p>\n<p>(2)Every regulation made under this section shall be laid before D\u00e1il \u00c9ireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by D\u00e1il \u00c9ireann within the next 21 days on which D\u00e1il \u00c9ireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder.<\/p>\n<p>848T.<\/p>\n<h4>Offences.<\/h4>\n<p>A person who makes a declaration under section 848F, section 848I, section 848O or section 848N(5) which is false, shall be guilty of an offence and shall be liable on summary conviction to a fine of \u20ac1,900, or, at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.<\/p>\n<p>848U.<\/p>\n<h4>Disclosure of information.<\/h4>\n<p>Notwithstanding any obligation as to secrecy or other restriction upon disclosure of information imposed by or under statute or otherwise, where a qualifying savings manager has reasonable grounds to suspect that the terms, provided for under section 848C, under which a special savings incentive account was commenced, are not being complied with, the qualifying savings manager shall inform the Revenue Commissioners accordingly.<\/p>\n<p>Part 36B<\/p>\n<h4>Pensions: incentive tax credits (ss. 848V-848AG)<\/h4>\n<p>848V.<\/p>\n<h4>Interpretation (Part 36B).<\/h4>\n<p>In this Part &#8211;<\/p>\n<p>&#8220;additional voluntary contributions&#8221; have, respectively, the meanings assigned to them in section 770;<\/p>\n<p>&#8220;retirement benefits scheme&#8221; have, respectively, the meanings assigned to them in section 770;<\/p>\n<p>&#8220;administrator&#8221; means, subject to section 848AD &#8211;<br \/>\n(a)in the case of a PRSA, a PRSA administrator,<br \/>\n(b)in the case of a retirement benefits scheme, an administrator within the meaning of section 770, and<br \/>\n(c)in the case of an annuity contract, a person mentioned in section 784 who is lawfully carrying on the business of granting annuities on human life, including the person mentioned in section 784(4A)(ii);<\/p>\n<p>&#8220;annuity contract&#8221; means an annuity contract or a trust scheme or part of a trust scheme for the time being approved by the Revenue Commissioners under section 784;<\/p>\n<p>&#8220;gross funds&#8221; in relation to a special savings incentive account have, respectively, the meanings assigned to them in section 848H(5);<\/p>\n<p>&#8220;maturity date&#8221; in relation to a special savings incentive account have, respectively, the meanings assigned to them in section 848H(5);<\/p>\n<p>&#8220;maturity statement&#8221; in relation to a special savings incentive account have, respectively, the meanings assigned to them in section 848H(5);<\/p>\n<p>&#8220;maturity tax&#8221; in relation to a special savings incentive account have, respectively, the meanings assigned to them in section 848H(5);<\/p>\n<p>&#8220;net funds&#8221; in relation to a special savings incentive account have, respectively, the meanings assigned to them in section 848H(5);<\/p>\n<p>&#8220;gross income&#8221; in relation to an individual for a year of assessment, means the aggregate of &#8211;<br \/>\n(a)the income of the individual from all sources for the year of assessment before any reduction is made from that income in respect of allowances, losses, deductions and other reliefs, including reductions by virtue of sections 372AP, 372AR and 372AU and, otherwise than where such allowances are made in taxing a trade, allowances under Part 9, and<br \/>\n(b)the amount of income for the year of assessment which is exempt from tax under the Tax Acts;<\/p>\n<p>&#8220;PPS Number&#8221; in relation to an individual, means the individual&#8217;s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;<\/p>\n<p>&#8220;PRSA administrator&#8221; have, respectively, the meanings assigned to them in Chapter 2A of Part 30;<\/p>\n<p>&#8220;PRSA contribution&#8221; have, respectively, the meanings assigned to them in Chapter 2A of Part 30;<\/p>\n<p>&#8220;special savings incentive account&#8221; has the meaning assigned to it in section 848C and &#8216;account&#8217; shall be construed accordingly.<\/p>\n<p>848W.<\/p>\n<h4>Transfer of funds on maturity of SSIA.<\/h4>\n<p>This Part applies to an individual &#8211;<\/p>\n<p>(a)whose gross income, for the year of assessment (in this section referred to as the &#8216;previous year&#8217;) immediately before the year of assessment in which the maturity date of the individual&#8217;s special savings incentive account falls, does not exceed \u20ac50,000, and<\/p>\n<p>(b)none of whose taxable income for the previous year is chargeable to tax at the higher rate, or in the case of an individual who is married, none of whose taxable income for that year would be so chargeable if, where it is not the case, the individual had made an application under section 1023 and that application had effect for that year, and who &#8211;<\/p>\n<p>(i)within the 3 month period commencing on the maturity date &#8211;<\/p>\n<p>(I)furnishes his or her maturity statement to an administrator, and<\/p>\n<p>(II)subscribes an amount (in this Part referred to as a &#8216;pension subscription&#8217;) being equal to all or part of the net funds, in relation to his or her special savings incentive account, to the administrator &#8211;<\/p>\n<p>(A)as an additional voluntary contribution,<\/p>\n<p>(B)as a PRSA contribution, or<\/p>\n<p>(C)as a premium under an annuity contract,<\/p>\n<p>(ii)makes a declaration of a kind referred to in section 848X,<\/p>\n<p>(iii)does not make a claim, under any provision of the Tax Acts, to a deduction for income tax purposes in respect of the pension subscription other than in respect of the amount by which it exceeds \u20ac7,500, the tax credit in relation to the pension subscription or the additional tax credit, and<\/p>\n<p>(iv)does not reduce any amount which he or she is required to pay, in the year in which he or she becomes entitled to be credited with tax credits under section 848Y, under a retirement benefits scheme, or as a PRSA contribution or as a premium under an annuity contract.<\/p>\n<p>848X.<\/p>\n<h4>Declaration.<\/h4>\n<p>The declaration, referred to in section 848W, is a declaration in writing made by an individual to an administrator which &#8211;<\/p>\n<p>(a)is made and signed by the individual,<\/p>\n<p>(b)is made in such form &#8211;<\/p>\n<p>(i)as may be prescribed or authorised by the Revenue Commissioners, and<\/p>\n<p>(ii)which contains a reference to the offence of making a false declaration under section 848AF,<\/p>\n<p>(c)contains the individual&#8217;s &#8211;<\/p>\n<p>(i)name,<\/p>\n<p>(ii)address of his or her permanent residence,<\/p>\n<p>(iii)PPS Number,<\/p>\n<p>(iv)date of birth, and<\/p>\n<p>(v)amount of pension subscription,<\/p>\n<p>and<\/p>\n<p>(d)declares that &#8211;<\/p>\n<p>(i)the individual&#8217;s gross income, for the year of assessment immediately before the year of assessment in which the maturity date of his or her special savings incentive account falls, does not exceed \u20ac50,000,<\/p>\n<p>(ii)none of the individual&#8217;s taxable income for the previous year is chargeable to tax at the higher rate, or in the case of an individual who is married, none of the individual&#8217;s taxable income for that year would be so chargeable if, where it is not the case, the individual had made an application under section 1023 and that application had effect for that year,<\/p>\n<p>(iii)the individual will not make a claim under any provision of the Tax Acts, to a deduction for income tax purposes in respect of the pension subscription other than in respect of the amount by which it exceeds \u20ac7,500, the tax credit in relation to the pension subscription or the additional tax credit, and<\/p>\n<p>(iv)the individual has not and will not reduce any amount which he or she is required to pay, in the year in which he or she becomes entitled to be credited with tax credits under section 848Y, under a retirement benefits scheme, or as a PRSA contribution or as a premium under an annuity contract.<\/p>\n<p>848Y.<\/p>\n<h4>Entitlement to pension tax credit.<\/h4>\n<p>Where an individual has made a declaration of a kind referred to in section 848X, and furnished to the administrator a maturity statement and a pension subscription, the individual shall, when the pension subscription is irrevocable &#8211;<\/p>\n<p>(a)subject to this Part, be treated for the purposes of the Tax Acts as having paid to the administrator a grossed up amount, which amount, after deducting income tax at the rate of 25 per cent, leaves the amount of the pension subscription, and<\/p>\n<p>(b)subject to section 848Z, be entitled to be credited, in accordance with the provisions of this Part and not under any other provision of the Tax Acts, with the amount of income tax (in this Part referred to as the &#8216;tax credit&#8217;, in relation to the pension subscription) treated as having been so deducted.<\/p>\n<p>848Z.<\/p>\n<h4>Tax credits.<\/h4>\n<p>(1)A tax credit in relation to a pension subscription shall not exceed \u20ac2,500.<\/p>\n<p>(2)An individual, who is entitled to a tax credit in relation to his or her pension subscription, shall be entitled to be credited, in accordance with the provisions of this Part and not under any other provision of the Tax Acts, with a further amount (in this Part referred to as an &#8216;additional tax credit&#8217;).<\/p>\n<p>(3)The amount of the additional tax credit shall be determined by the formula &#8211;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the maturity tax in relation to the individual&#8217;s account,<\/p>\n<p>Bis the net funds, in relation to the individual&#8217;s account, and<\/p>\n<p>Cis the amount of the pension subscription.<\/p>\n<p>848AA.<\/p>\n<h4>Payment of tax credits.<\/h4>\n<p>Where an individual becomes entitled to a tax credit, in relation to his or her pension subscription, and an additional tax credit, and the administrator complies with section 848AB &#8211;<\/p>\n<p>(a)the Revenue Commissioners shall, subject to that section, pay to the administrator, the tax credit and the additional tax credit,<\/p>\n<p>(b)those tax credits shall, on receipt, be immediately treated by the administrator as an additional voluntary contribution, a PRSA contribution, or as the case may be, a premium under an annuity contract, made by the individual, and<\/p>\n<p>(c)the pension subscription to the extent that it does not exceed \u20ac7,500 and the amount of those tax credits shall be disregarded for the purposes of any claim by the individual to relief under Chapters 1, 2, 2A and 2B of Part 30.<\/p>\n<p>848AB.<\/p>\n<h4>Monthly return.<\/h4>\n<p>An administrator who is or was registered in accordance with section 848AD, shall, within 15 days of the end of every month, make a return (including, where it is the case, a nil return) to the Revenue Commissioners, which &#8211;<\/p>\n<p>(a)specifies in respect of all individuals who in the previous month became entitled, under this Part, to be credited with tax credits &#8211;<\/p>\n<p>(i)the aggregate amount of tax credits in relation to pension subscriptions,<\/p>\n<p>(ii)the aggregate amount of additional tax credits, and<\/p>\n<p>(iii)the number of pension subscriptions concerned, distinguishing between additional voluntary contributions, PRSA contributions and premiums under an annuity contract,<\/p>\n<p>and<\/p>\n<p>(b)contains a declaration in a form prescribed or authorised by the Revenue Commissioners that, to the best of the administrator&#8217;s knowledge and belief, the information referred to in paragraph (a) is correct.<\/p>\n<p>848ABA.<\/p>\n<h4>Withdrawal of tax credits.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;requested amount&#8217; has the meaning assigned to it in subsection (2);<\/p>\n<p>&#8216;retained amount&#8217;, in relation to a requested amount and subject to subsection (4), means the amount determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ris the requested amount,<\/p>\n<p>Cis the aggregate of the tax credit and the additional tax credit, in relation to the pension subscription made by the individual, and<\/p>\n<p>Sis the amount of the pension subscription;<\/p>\n<p>&#8216;vesting day&#8217;, in relation to an individual&#8217;s pension product, means the day on which an administrator, in accordance with section 848AA, treats tax credits as an additional voluntary contribution, a PRSA contribution, or as the case may be, a premium under an annuity contract, made by the individual.<\/p>\n<p>(2)Where the vesting day in relation to an individual&#8217;s pension product is on or after 29 September 2006, and, within a period of 1 year commencing on the vesting day, the individual requires the administrator to pay an amount (in this section referred to as a \u2018requested amount&#8217;) to him or her &#8211;<\/p>\n<p>(a)where payment is to be made on or after 10 April 2007, the administrator shall deduct from the requested amount, the retained amount in relation to the requested amount, and<\/p>\n<p>(b)where payment is made before 10 April 2007, the individual shall be assessed to income tax for the year of assessment 2007 in such an amount as would ensure that the individual is liable to pay to the Revenue Commissioners an amount equal to the retained amount, in relation to the requested amount.<\/p>\n<p>(3)Where in accordance with subsection (2)(a) an administrator deducts a retained amount, the administrator is liable to pay that amount to the Revenue Commissioners in accordance with arrangements determined by them.<\/p>\n<p>(4)The retained amount, in relation to any part of a requested amount or the aggregate of requested amounts that exceeds the aggregate of the tax credit, the additional tax credit and the pension subscription, shall be a nil amount.<\/p>\n<p>(5)An administrator shall, when requested to do so by the Revenue Commissioners, furnish to them in respect of each individual who required the administrator to pay a requested amount &#8211;<\/p>\n<p>(a)the name of the individual,<\/p>\n<p>(b)the address of the individual,<\/p>\n<p>(c)the PPS Number of the individual,<\/p>\n<p>(d)the amount of tax credit in relation to the pension subscription made by the individual, that was claimed and paid,<\/p>\n<p>(e)the amount of additional tax credit that was claimed and paid,<\/p>\n<p>(f)the requested amount,<\/p>\n<p>(g)the amount deducted by the administrator from the requested amount,<\/p>\n<p>(h)the date on which payment was made to the individual, and<\/p>\n<p>(i)such other information as the Revenue Commissioners may require.<\/p>\n<p>848AC.<\/p>\n<h4>Other returns.<\/h4>\n<p>An administrator who is or was registered in accordance with section 848AD, shall, in respect of each of the 4 month periods ending on 30 September 2006, 31 January 2007, 31 May 2007 and 30 September 2007, on or before the 28th day of the month following the end of the period, make a return to the Revenue Commissioners (including, where it is the case, a nil return) which specifies &#8211;<\/p>\n<p>(a)in respect of each individual for whom tax credits were claimed in the period &#8211;<\/p>\n<p>(i)the name of the individual,<\/p>\n<p>(ii)the address of the individual,<\/p>\n<p>(iii)the PPS Number of the individual,<\/p>\n<p>(iv)the maturity date in relation to the individual&#8217;s special savings incentive account,<\/p>\n<p>(v)the gross funds in relation to the account,<\/p>\n<p>(vi)the net funds in relation to the account,<\/p>\n<p>(vii)the maturity tax in relation to the account,<\/p>\n<p>(viii)the amount of the pension subscription,<\/p>\n<p>(ix)the amount of the tax credit in relation to the pension subscription that was claimed and paid,<\/p>\n<p>(x)the amount of the additional tax credit that was claimed and paid, and<\/p>\n<p>(xi)whether the tax credits were treated as an additional voluntary contribution, a PRSA contribution or a premium under an annuity contract,<\/p>\n<p>and<\/p>\n<p>(b)in relation to tax credits claimed in the period &#8211;<\/p>\n<p>(i)the total amount of tax credits, in relation to pension subscriptions, and<\/p>\n<p>(ii)the total amount of additional tax credits.<\/p>\n<p>848AD.<\/p>\n<h4>Registration and audit of administrators.<\/h4>\n<p>(1)A person cannot be an administrator for the purposes of this Part unless the person is included in a register maintained by the Revenue Commissioners for the purposes of this Part.<\/p>\n<p>(2)The Revenue Commissioners may &#8211;<\/p>\n<p>(a)audit the returns made by administrators under sections 848AB and 848AC, and<\/p>\n<p>(b)examine the procedures put in place by the administrator for the purpose of ensuring that the returns are correct.<\/p>\n<p>848AE.<\/p>\n<h4>Regulations (Part 36B).<\/h4>\n<p>(1)The Revenue Commissioners may make regulations providing generally as to the administration of this Part and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision &#8211;<\/p>\n<p>(a)as to the manner in which an administrator is to be registered under section 848AD,<\/p>\n<p>(b)as to the manner in which a return is to be made under section 848AB, and how errors in such a return are to be corrected,<\/p>\n<p>(c)as to the manner in which a return is to be made under section 848AC, and how errors in such a return are to be corrected,<\/p>\n<p>(d)as to the manner in which tax credits are to be claimed and paid,<\/p>\n<p>(e)as to the period for which the documents referred to in section 848AG are required to be retained, and<\/p>\n<p>(f)as to the manner in which the Revenue Commissioners may examine the procedures put in place by an administrator to ensure compliance with the provisions of this Part.<\/p>\n<p>(2)Every regulation made under this section shall be laid before D\u00e1il \u00c9ireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by D\u00e1il \u00c9ireann within the next 21 days on which D\u00e1il \u00c9ireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly but without prejudice to the validity of anything previously done thereunder.<\/p>\n<p>848AF.<\/p>\n<h4>Offences (Part 36B).<\/h4>\n<p>A person who makes a declaration under section 848X or 848AB which is false, is liable on summary conviction to a fine of \u20ac3,000, or at the discretion of the court, to imprisonment for a term not exceeding 6 months or to both the fine and the imprisonment.<\/p>\n<p>848AG. Retention of declarations.<br \/>\nAn administrator shall retain in respect of each individual to whom this Part applies &#8211;<\/p>\n<p>(a)the maturity statement in relation to the individual&#8217;s special savings incentive account, and<\/p>\n<p>(b)the declaration of a kind referred to in section 848X made by the individual,<\/p>\n<p>for such period and in such form as the Revenue Commissioners may by regulation provide.<\/p>\n<p>838.<\/p>\n<h4>Special portfolio investment accounts.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>&#8220;designated broker&#8221; means a person &#8211;<\/p>\n<p>(i)which is a dealing member firm of the Irish Stock Exchange or a member firm (which carries on a trade in the State through a branch or agency) of a stock exchange of any other Member State of the European Communities, and<\/p>\n<p>(ii)which has sent to the Revenue Commissioners a notification of its name and address and of its intention to accept specified deposits;<\/p>\n<p>&#8220;gains&#8221; means chargeable gains within the meaning of the Capital Gains Tax Acts, including gains which but for section 607 would be chargeable gains;<\/p>\n<p>&#8220;market value&#8221; shall be construed in accordance with section 548;<\/p>\n<p>&#8220;ordinary shares&#8221; means shares forming part of a company&#8217;s ordinary share capital;<\/p>\n<p>&#8220;qualifying shares&#8221; means ordinary shares in a company which are &#8211;<\/p>\n<p>(i)listed in the official list of the Irish Stock Exchange, or<\/p>\n<p>(ii)quoted on the market known as the Developing Companies Market, or the market known as the Exploration Securities Market, of the Irish Stock Exchange,<\/p>\n<p>other than &#8211;<\/p>\n<p>(I)shares in an investment company within the meaning of Chapter 1 of Part 24 of the Companies Act 2014,<\/p>\n<p>(II)shares in an undertaking for collective investment in transferable securities within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 (S.I. No. 78 of 1989), or<\/p>\n<p>(III)shares in a company, being shares the market value of which may be expected to approximate at all times to the market value of the proportion of the assets of the company which they represent;<\/p>\n<p>&#8220;relevant income or gains&#8221; means the aggregate of the income and gains, including losses, arising from relevant investments, but only so much of income arising to or gains accruing to the special portfolio investment account shall be relevant income or gains as is or is to be &#8211;<\/p>\n<p>(i)paid to, or<\/p>\n<p>(ii)accumulated or invested for the benefit of,<\/p>\n<p>the individual in whose name the special portfolio investment account is held, or would be so paid, accumulated or invested if any gains accruing to the account in accordance with subsection (4)(e) were gains on an actual disposal of the assets concerned;<\/p>\n<p>&#8220;relevant investment&#8221; means an investment in fully paid-up &#8211;<\/p>\n<p>(i)qualifying shares and specified qualifying shares, or<\/p>\n<p>(ii)qualifying shares, specified qualifying shares and securities,<\/p>\n<p>as the case may be, acquired by a designated broker at market value by the expenditure of money contributed by means of a specified deposit, and held by a designated broker in a special portfolio investment account;<\/p>\n<p>&#8220;securities&#8221; means securities &#8211;<\/p>\n<p>(i)issued under the authority of the Minister for Finance, or<\/p>\n<p>(ii)issued by the Electricity Supply Board, Raidi\u00f3 Teilif\u00eds \u00c9ireann, C\u00f3ras Iompair \u00c9ireann, Bord na M\u00f3na or Dublin Airport Authority,<\/p>\n<p>which are listed in the official list of the Irish Stock Exchange;<\/p>\n<p>&#8220;special portfolio investment account&#8221; means an account opened on or after 1 February 1993 and before 6 April 2001, in which a relevant investment is held and in respect of which the conditions referred to in paragraph (c) are complied with;<\/p>\n<p>&#8220;specified deposit&#8221; means a sum of money paid by an individual to a designated broker for the purpose of acquiring assets which will form part of a relevant investment;<\/p>\n<p>&#8220;specified qualifying shares&#8221;, in relation to a special portfolio investment account, means qualifying shares in a company which when the shares are acquired for the account has an issued share capital the market value of which is less than \u20ac255,000,000.<\/p>\n<p>(b)For the purposes of this section, Chapter 4 of Part 8 shall be construed as if &#8211;<\/p>\n<p>(i)references to &#8220;deposit&#8221;, &#8220;interest&#8221;, &#8220;relevant deposit&#8221;, &#8220;relevant deposit taker&#8221;, &#8220;relevant interest&#8221; and &#8220;special savings account&#8221; were respectively references to &#8220;specified deposit&#8221;, &#8220;income or gains&#8221;, &#8220;relevant investment&#8221;, &#8220;designated broker&#8221;, &#8220;relevant income or gains&#8221; and &#8220;special portfolio investment account&#8221; within the meaning of this section, and<\/p>\n<p>(ii)subsections (4) and (5) of section 258 and section 259 had not been enacted.<\/p>\n<p>(c)Notwithstanding subsection (3), section 264 shall apply to a special portfolio investment account as if &#8211;<\/p>\n<p>(i)paragraphs (d) to (i) of subsection (1) of that section had not been enacted, and<\/p>\n<p>(ii)the conditions in subsection (2) of this section had been included in subsection (1) of that section.<\/p>\n<p>(2)The conditions referred to in subsection (1)(c)(ii) are:<\/p>\n<p>(a)each special portfolio investment account and all assets held in such an account shall be kept separately from all other investment accounts, if any, operated by a designated broker;<\/p>\n<p>(b)the amount of a specified deposit or, if there is more than one, the aggregate of such amounts in respect of assets held at the same time as part of a special portfolio investment account shall not exceed &#8211;<\/p>\n<p>(i)in the case of a special portfolio investment account in respect of which &#8211;<\/p>\n<p>(I)the first specified deposit was made on or before the 5th day of April, 2000, and<\/p>\n<p>(II)an amount (in this paragraph referred to as &#8220;the particular amount&#8221;) equal to the whole or a part of the specified deposit or specified deposits has been used to acquire shares in a company quoted on the market known as the Developing Companies Market of the Irish Stock Exchange and those shares are at that time held as assets of the special portfolio investment account,<\/p>\n<p>\u20ac63,500 increased by the lesser of &#8211;<\/p>\n<p>(A)the particular amount, and<\/p>\n<p>(B)\u20ac12,700,<\/p>\n<p>and<\/p>\n<p>(ii)in the case of any other special portfolio investment account, \u20ac63,500;<\/p>\n<p>(c)[deleted]<\/p>\n<p>(d)the aggregate of the consideration given for shares which are at any time before the 1st day of February, 1994, assets of a special portfolio investment account shall not be less than &#8211;<\/p>\n<p>(i)as respects qualifying shares, 40 per cent, and<\/p>\n<p>(ii)as respects specified qualifying shares, 6 per cent,<\/p>\n<p>of the aggregate of the consideration given for the assets of the account at that time;<\/p>\n<p>(e)the aggregate of the consideration given for shares which are at any time within the year ending on the 31st day of January, 1995, assets of a special portfolio investment account shall not be less than &#8211;<\/p>\n<p>(i)as respects qualifying shares, 45 per cent, and<\/p>\n<p>(ii)as respects specified qualifying shares, 9 per cent,<\/p>\n<p>of the aggregate of the consideration given for the assets of the account at that time;<\/p>\n<p>(f)the aggregate of the consideration given for shares which are at any time within the year ending on the 31st day of January, 1996, assets of a special portfolio investment account shall not be less than &#8211;<\/p>\n<p>(i)as respects qualifying shares, 50 per cent, and<\/p>\n<p>(ii)as respects specified qualifying shares, 10 per cent,<\/p>\n<p>of the aggregate of the consideration given for the assets of the account at that time;<\/p>\n<p>(g)the aggregate of the consideration given for shares which are at any time on or after 1 February 1996 and before 31 December 2000, assets of a special portfolio investment account shall not be less than &#8211;<\/p>\n<p>(i)as respects qualifying shares, 55 per cent, and<\/p>\n<p>(ii)as respects specified qualifying shares, 10 per cent,<\/p>\n<p>of the aggregate of the consideration given for the assets of the account at that time;<\/p>\n<p>and for the purposes of &#8211;<\/p>\n<p>(I)paragraphs (b) and (c), a disposal of shares or securities, being shares or securities, as the case may be, of the same class acquired for a special portfolio investment account at different times, shall be assumed to be a disposal of shares or securities, as the case may be, acquired later, rather than of shares or securities, as the case may be, acquired earlier for the special portfolio investment account, and<\/p>\n<p>(II)paragraphs (d) to (g), the amount of the consideration given for shares shall be determined in accordance with sections 547 and 580.<\/p>\n<p>(3)Chapter 4 of Part 8 (other than section 259) shall, subject to this section and with any other necessary modifications, apply to special portfolio investment accounts as it applies to special savings accounts, and in particular the rate of appropriate tax specified in section 256(1) in relation to relevant interest payable in respect of a relevant deposit or relevant deposits held in a special savings account shall apply to special portfolio investment accounts.<\/p>\n<p>(4)<\/p>\n<p>(a)Paragraphs (b) to (h) shall apply notwithstanding any other provision of the Tax Acts and the Capital Gains Tax Acts.<\/p>\n<p>(b)Where for any year of assessment a loss arises from the computation of relevant income or gains, that loss shall be included in the computation of the relevant income or gains of the special portfolio investment account for the next year of assessment, and, in so far as relief for the loss cannot be so given, it shall be set against such relevant income or gains in the next year of assessment and, where appropriate, in each subsequent year of assessment in so far as it cannot be so relieved, and no further relief shall be allowed under any provision of the Tax Acts or the Capital Gains Tax Acts in respect of that loss.<\/p>\n<p>(bb)Notwithstanding paragraph (b), where, at the time a special portfolio investment account is closed, a loss has not been relieved under that paragraph because of an insufficiency of relevant income or gains at that time, that loss shall for the purposes of section 31 be treated as an allowable loss accruing at that time to the individual in whose name the special portfolio investment account was held.<\/p>\n<p>(c)Sections 556, 601, 607 and 1028(5) shall not apply in relation to any gains referable to a relevant investment.<\/p>\n<p>(d)<\/p>\n<p>(i)In this paragraph &#8211;<\/p>\n<p>&#8220;the appropriate amount in respect of the interest&#8221; means the appropriate amount in respect of the interest which would be determined in accordance with Schedule 21 if the designated broker were the first buyer and carried on a trade to which section 749(1) applies;<\/p>\n<p>&#8220;securities&#8221; has the same meaning as in section 815.<\/p>\n<p>(ii)Subject to subparagraph (iii), where &#8211;<\/p>\n<p>(I)in a year of assessment (in this subparagraph referred to as &#8220;the first year of assessment&#8221;) securities which are assets of a special portfolio investment account are disposed of, and<\/p>\n<p>(II)in the following year of assessment interest becoming payable in respect of the securities is receivable by the special portfolio investment account,<\/p>\n<p>then, for the purposes of computing the relevant income or gains for the first year of assessment, the price paid by the designated broker for the securities shall be treated as reduced by the appropriate amount in respect of the interest.<\/p>\n<p>(iii)Where for a year of assessment subparagraph (ii) applies so as to reduce the price paid for securities, the amount by which the price paid for the securities is reduced shall be treated as a loss arising in the following year of assessment from the disposal of the securities.<\/p>\n<p>(e)For the purpose of computing relevant income or gains of a special portfolio investment account for a year of assessment, each asset of a special portfolio investment account on 31 December in that year of assessment shall be deemed to have been disposed of and immediately reacquired by the designated broker on that day at the asset&#8217;s market value on that day.<\/p>\n<p>(f)Subject to subsection (5), where in a year of assessment the relevant income or gains of a special portfolio investment account includes a distribution from a company resident in the State, the amount or value of that distribution shall be taken into account in computing the relevant income or gains for that year of assessment.<\/p>\n<p>(g)[deleted]<\/p>\n<p>(h)Capital gains tax shall not be chargeable on the disposal of assets held as part of a relevant investment; but this paragraph shall not prevent any such disposals from being taken into account in computing the amount of relevant income or gains on which appropriate tax is payable.<\/p>\n<p>(5)<\/p>\n<p>(a)In this subsection &#8211;<\/p>\n<p>&#8220;eligible shares&#8221; has the same meaning as in section 591(1);<\/p>\n<p>&#8220;qualifying company&#8221; has the meaning assigned to it by section 490.<\/p>\n<p>(b)Without prejudice to the treatment of losses on eligible shares as allowable losses, gains accruing on the disposal or deemed disposal of eligible shares in a qualifying company shall not for the purposes of computing appropriate tax in accordance with subsection (6) be treated as gains.<\/p>\n<p>(c)Distributions included in the relevant income or gains of a special portfolio investment account in respect of eligible shares in qualifying companies shall not be taken into account in computing appropriate tax in accordance with subsection (6).<\/p>\n<p>(6)<\/p>\n<p>(a)For the purposes of sections 257 and 258, a designated broker shall, in relation to each special portfolio investment account &#8211;<\/p>\n<p>(i)be deemed to have made a payment on 31 December in each year of assessment of the amount of relevant income or gains for that year of assessment, and<\/p>\n<p>(ii)be liable to make a payment of appropriate tax in relation to such payment.<\/p>\n<p>(b)The designated broker may deduct an amount on account of any such payment of appropriate tax and the individual beneficially entitled to the assets in the special portfolio investment account shall allow such deduction from any income or from the proceeds of the sale of any assets which the designated broker holds as part of the special portfolio investment account; but, where there are no such funds or insufficient funds available out of which the designated broker may satisfy the appropriate tax, the amount of such tax shall be an amount due to the designated broker from the person beneficially entitled to the relevant investment.<\/p>\n<p>(c)For the purposes of this section, section 258 shall apply as if in subsection (2) of that section &#8220;on or before 31 October following that year of assessment&#8221; were substituted for &#8220;within 15 days from the end of the year of assessment&#8221;.<\/p>\n<p>(7)Part 16 shall not apply in relation to any shares which form part of a relevant investment.<\/p>\n<p>839. Limits to special investments.<br \/>\n(1)Subject to subsection (2), an individual shall not at the same time have a beneficial interest in investments of more than one of the following classes of investment &#8211;<\/p>\n<p>(a)special savings accounts within the meaning of section 256(1) (such an account being referred to subsequently in this section as a &#8220;special savings account&#8221;);<\/p>\n<p>(b)[deleted]<\/p>\n<p>(c)special investment units within the meaning of section 737;<\/p>\n<p>(d)special portfolio investment accounts within the meaning of section 838.<\/p>\n<p>(2)<\/p>\n<p>(a)An individual, whether married or not or in a civil partnership or not, who does not have a joint interest in an investment of a class mentioned in subsection (1) may have a beneficial interest, that is not a joint interest, in 2 such investments, being a special savings account and an investment of a class mentioned in paragraph (c) or (d) of that subsection, during a period throughout which &#8211;<\/p>\n<p>(i)as respects the special savings account, the condition specified in section 264(1)(i) would be satisfied if &#8220;\u20ac31,750&#8221; were substituted for &#8220;\u20ac63,500&#8221; in that condition, or<\/p>\n<p>(ii)as respects the other investment, the condition specified in section 737(3)(a)(ii) or 838(2)(b) relevant to that investment would be satisfied if &#8220;\u20ac31,750&#8221; were substituted for &#8220;\u20ac63,500&#8221; in those conditions.<\/p>\n<p>(b)Two individuals who are married to each other, or are civil partners of each other, neither of whom has an interest, that is not a joint interest, in an investment of a class mentioned in subsection (1), may have a joint beneficial interest &#8211;<\/p>\n<p>(i)in 2 or 3 such investments, so long as those investments include a special savings account and an investment of a class mentioned in paragraph (c) or (d) of that subsection, or<\/p>\n<p>(ii)in 4 such investments, being 2 special savings accounts and 2 other investments of a class (which need not be the same class for the 2 investments) mentioned in paragraph (c) or (d) of that subsection, during a period throughout which &#8211;<\/p>\n<p>(I)as respects the special savings accounts, the condition specified in section 264(1)(i) would be satisfied if &#8220;\u20ac31,750&#8221; were substituted for &#8220;\u20ac63,500&#8221; in that condition, or<\/p>\n<p>(II)as respects the other investments, the condition specified in section 737(3)(a)(ii) or 838 (2)(b) relevant to each of those investments would be satisfied if &#8220;\u20ac31,750&#8221; were substituted for &#8220;\u20ac63,500&#8221; in those conditions.<\/p>\n<p>(3)So long as an individual, whether married or not or in a civil partnership or not, does not have a beneficial interest in an investment of a class mentioned in subsection (1) other than &#8211;<\/p>\n<p>(a)a beneficial interest, whether or not a joint interest, in one investment, or<\/p>\n<p>(b)a joint beneficial interest in 2 investment of a class (which need not be the same class) mentioned in subsection (1),<\/p>\n<p>then, sections 264, 737 and 838 shall apply to that one investment or those 2 investments, as the case may be, as if every reference to \u20ac63,500 in those sections were a reference to \u20ac95,250.<\/p>\n<p>(4)Where an individual may hold a beneficial interest, whether jointly or otherwise, in an investment of a class mentioned in subsection (1) only for as long as a condition specified in the Tax Acts in respect of the investment would be satisfied if a reference to \u20ac31,750 were substituted for a reference to \u20ac63,500 in the condition so specified, then, any provision of those Acts which apart from this subsection would have the effect at any time of restricting that investment to an investment the value of which does not exceed \u20ac63,500 shall apply to that investment as if the reference to \u20ac63,500 in the provision were a reference to \u20ac31,750.<\/p>\n<p>(5)Any declaration referred to in &#8211;<\/p>\n<p>(a)paragraph (b) of the definition of &#8220;special savings account&#8221; in section 256(1),<\/p>\n<p>(b)paragraph (b) of the definition of &#8220;special investment policy&#8221; in section 723(1), or<\/p>\n<p>(c)paragraph (b) of the definition of &#8220;special investment units&#8221; in section 737(1),<\/p>\n<p>shall contain &#8211;<\/p>\n<p>(i)such information in relation to the beneficial interest, which at the time the declaration is made the individual making the declaration holds, whether jointly or otherwise, in investments of a class mentioned in subsection (1), and<\/p>\n<p>(ii)such undertakings, to the person to whom the declaration is made, to supply at any later time information in relation to such interests of that individual at that later time,<\/p>\n<p>as the Revenue Commissioners may reasonably require for the purposes of this section.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-11161\" data-postid=\"11161\" class=\"themify_builder_content themify_builder_content-11161 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Investment Income Treatment Investment income is categorised differently from trade income. Investment income must be removed from the accounts when computing trading income. As with other categories of income, there are special rules regarding the computation of tax on investment income. Generally, there are very limited write-offs and deductions against gross income. In many cases, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[352],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11161"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=11161"}],"version-history":[{"count":25,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11161\/revisions"}],"predecessor-version":[{"id":34863,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11161\/revisions\/34863"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=11161"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=11161"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=11161"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}