Finance Act, 1986
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Chapter IV Interest Payments by Certain Deposit Takers | ||
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Interpretation ( Chapter IV ). |
31.—(1) In this Chapter— | |
“amount on account of appropriate tax” shall be construed in accordance with section 33 (4); | ||
“appropriate tax”, in relation to a payment of relevant interest, means a sum representing income tax on the amount of that payment at the standard rate in force at the time of the payment; | ||
“building society” means a society within the meaning of the Building Societies Acts, 1976 to 1983; | ||
“deposit” means a sum of money paid to a relevant deposit taker on terms under which it will 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; | ||
“interest” 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 a building society, includes any dividend or other distribution in respect of shares in the society: | ||
Provided that any amount consisting of an excess of the amount received on the redemption of any holding of A.C.C. Bonus Bonds — First Series, issued by the Agricultural Credit Corporation, p.l.c., over the amount paid for the holding shall not be treated as interest for the purposes of this Chapter; | ||
“relevant deposit” means a deposit held by a relevant deposit taker other than a deposit— | ||
(a) which is made by, and the interest on which is beneficially owned by— | ||
(i) a relevant deposit taker, | ||
(ii) the Central Bank of Ireland, or | ||
(iii) the Insurance Corporation of Ireland, p.l.c., | ||
(b) which is a debt on a security which is issued by the relevant deposit taker and is listed on a stock exchange, | ||
(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, | ||
(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, | ||
(e) which is a deposit denominated in a foreign currency, | ||
(f) in respect of which— | ||
(i) no person who is ordinarily resident in the State is beneficially entitled to any interest, and | ||
(ii) a declaration of the kind mentioned in section 37 has been made to the relevant deposit taker, or | ||
(g) (i) the interest on which is exempt— | ||
(I) from income tax under Schedule D by virtue of paragraph (b) of section 333 (1) of the Income Tax Act, 1967 , or | ||
(II) from corporation tax by virtue of the exemption conferred by the said paragraph (b) of the said section 333 (1) as it has effect for the purposes of corporation tax under section 11 (6) of the Corporation Tax Act, 1976 , | ||
as the case may be, and | ||
(ii) in respect of which a declaration of the kind mentioned in section 38 has been made to the relevant deposit taker; | ||
“relevant deposit taker” means any of the following persons, that is to say: | ||
(a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 , | ||
(b) a building society, | ||
(c) a trustee savings bank within the meaning of the Trustee Savings Banks Acts, 1863 to 1979, | ||
(d) the Agricultural Credit Corporation, p.l.c., | ||
(e) the Industrial Credit Corporation, p.l.c., | ||
and | ||
(f) the Post Office Savings Bank; | ||
“relevant interest” means interest paid on or after the 6th day of April, 1986, in respect of a relevant deposit; | ||
“return” means a return under section 33 (2). | ||
(2) For the purposes of this Chapter— | ||
(a) any amount which is 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, | ||
(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 therefrom, and | ||
(c) a deposit is held at a branch of a relevant deposit taker if it is recorded in its books as a liability of that branch. |