Finance Act, 1970

Payment of interest on State-guaranteed securities without deduction of tax.

59.—(1) This section applies to any securities (other than securities to which section 467 , 468 , 471 or 473 of the Income Tax Act, 1967 , applies) which are issued by a body corporate and in respect of which the payment of interest and the repayment of principal is guaranteed by a Minister of State under statutory authority.

(2) Any securities to which this section applies shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 466 of the Income Tax Act, 1967 , and that section shall apply accordingly.

(3) Notwithstanding anything contained in the Income Tax Acts, in computing for the purposes of assessment under Case I of Schedule D the amount of the profits or gains of a body corporate by which the securities to which this section applies are issued, for any period for which accounts are made up, there shall be allowed as a deduction the amount of the interest on such securities which, by direction of the Minister for Finance under section 466 of the Income Tax Act, 1967 , as applied by this section, is paid by the body corporate without deduction of tax for such period.

(4) Section 34 of the Finance Act, 1956 , is hereby amended by the insertion at the end of subsection (1) of “or of section 59 of the Finance Act, 1970.”.

(5) Section 474 of the Income Tax Act, 1967 , is hereby amended by the insertion at the end of subsection (1) of “or section 59 of the Finance Act, 1970.”.

(6) Section 63 of the Finance Act, 1969 , shall apply to securities to which this section applies.