Finance (No. 2) Act, 1992

Amendment of provisions relating to interest payments by certain deposit takers.

3.—Chapter IV of Part I of the Finance Act, 1986 , is hereby amended—

(a) in subsection (1) of section 31—

(i) by the insertion of the following definition after the definition of “deposit”:

“‘foreign currency’ means a currency other than the currency of the State;”,

(ii) in the definition of “relevant deposit”—

(I) by the addition to paragraph (e) (inserted by the Finance Act, 1991 ) of the following additional proviso after the proviso to that paragraph:

“Provided also that this paragraph shall not apply to a deposit denominated in a foreign currency which is made on or after the operative date,”,

and

(II) by the substitution in paragraph (ee) (inserted by the Finance Act, 1992 ) of the following sub-paragraph for subparagraph (i):

“(i) which is made on or after the operative date by, and the interest on which is beneficially owned by—

(I) a company which is or will be within the charge to corporation tax in respect of the interest, or

(II) a pension scheme,

and”,

(b) in subsection (1) of section 37A (inserted by the Finance Act, 1992 ), by the insertion of the following paragraphs after paragraph (a):

“(aa) the account shall not be denominated in a foreign currency;

(aaa) 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 is connected with another account if—

(i) (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

(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,

or

(ii) the terms on which either account is operated are altered or affected in any way whatsoever because of the existence of the other account;”,

and

(c) in subsection (1) of section 37B (inserted by the Finance Act, 1992 ), by the substitution of the following paragraph for paragraph (c):

“(c) declares that at the time the declaration is made the interest on the deposit in respect of which the declaration is made—

(i) (I) is beneficially owned by a company within the charge to corporation tax, and

(II) will be included in the profits of the company on which it is to be charged to corporation tax,

or

(ii) is beneficially owned by a pension scheme,”.