Income Tax Act, 1967.

Chapter II

Stocks, Shares, and Securities of Manufacturing Companies

Relief to investors.

332.—(1) Where an individual who is resident in the State and is not resident elsewhere claims and proves to the satisfaction of the Special Commissioners that he is entitled to the beneficial ownership of any stock, shares, or security to which this section applies, the following provisions shall have effect, that is to say:—

(a) such individual shall be entitled to repayment of 20 per cent. of the income tax applicable to any dividend or interest received by him in respect of such stock, shares, or security, save in so far as relief or repayment in respect of such tax has been or is granted under any other provision of this Act;

(b) in estimating the total income from all sources of such individual for the purposes of income tax and sur-tax the amount of any dividend or interest in respect of such stock, shares, or security shall be deemed to be diminished by 20 per cent.

(2) This section shall apply to all stocks, shares, and securities issued whether before or after the passing of this Act by a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods, and in respect of which the Revenue Commissioners certify that they are satisfied that all the following conditions are complied with in relation to such stock, share, or security, that is to say:

(a) such stock, share, or security is or was issued by a company which complies with the following provisions, that is to say, such company—

(i) is incorporated by or under the laws of the State, and

(ii) is a company limited by shares within the meaning of the Companies Act, 1963 , and

(iii) is managed and controlled in the State, and

(iv) carries on or (in the case of a company which has not commenced to carry on business) intends to carry on its business wholly or mainly in the State; and

(b) the stocks, shares, or securities—

(i) have been issued for public subscription, or

(ii) belong to a class of the company's stocks, shares, or securities that is quoted on a stock exchange in the State, and the number of individuals as described in subsection (1) who are beneficial owners of stocks, shares, or securities of that class is not less than fifty; and

(c) such issue of stock, shares, or security is so described and designated that it is readily distinguishable from all other (if any) issues of such company.

(3) Every warrant, cheque, or order drawn or made for the payment of any dividend or interest in respect of any stock, share, or security to which this section applies shall indicate clearly either (as the case may require)—

(a) that the whole of the sum for which such warrant, cheque, or order is drawn or made is a payment of or on account of dividend or interest in respect of such stock, share, or security; or

(b) that a part (the amount of which is separately stated) of such sum is a payment of or on account of such dividend or interest.

(4) Any stock, share, or security to which this section applies shall cease to be a stock, share, or security (as the case may be) to which this section applies if and when the Revenue Commissioners certify in relation to such stock, share, or security that they are satisfied that the company's trade or business has ceased to consist wholly or mainly of the production for sale of manufactured goods or that, as respects the company, all or any of the conditions set forth in subsection (2) (a) or, as respects such stock, share, or security, all or any of the conditions set forth in subsection (2) (b) (c), or in subsection (3), have ceased to be complied with.

(5) Where—

(a) the company has issued any stocks, shares, or securities in respect of which a certificate under subsection (2) has been given and continues to have effect, and

(b) the company subsequently issues any stocks, shares, or securities—

(i) offered or allotted to the holders as such, at or about the time of such subsequent issue, of the first-mentioned stocks, shares, or securities or of a particular class thereof, and

(ii) so offered or allotted on a basis calculated by reference to the respective holdings of those holders,

the stocks, shares, or securities which the company subsequently issues as aforesaid shall, for the purposes of this section, be deemed to be issued for public subscription.

(6) Where—

(a) a company (in this subsection referred to as the holding company) holds beneficially more than 90 per cent. (in nominal value) of the issued stocks, shares, and securities of any other company or companies,

(b) all of such stocks, shares, or securities are such as would qualify for a certificate of the Revenue Commissioners under subsection (2) but for paragraph (b) of that subsection, and

(c) such holding is the sole or main business of the holding company,

subsections (2) and (4) shall, so long as the foregoing conditions subsist, have effect in relation to stocks, shares, and securities issued by the holding company as if the holding company were a company whose trade or business consisted wholly or mainly of the production for sale of manufactured goods.

(7) Nothing in this section shall—

(a) affect the validity of any certificate under section 329 (2) issued before the 18th day of July, 1957, or

(b) in a case in which such a certificate has been so issued, prevent the issue of a certificate under section 329 (4).

(8) Where a certificate is given under subsection (2) relief or repayment under subsection (1) shall not be granted in respect of any dividend or interest on the stocks, shares, or securities which was payable before the date of the certificate.