Finance Act, 1938

Amendments of Schedule C and consequential amendments of Schedule D.

5.—(1) For all the purposes of income tax chargeable under Schedule C of the Income Tax Act, 1918, or under Case III of Schedule D of that Act, the expression “public revenue” wherever it occurs in the said Schedule C (including the Rules applicable to that Schedule) or in Rule 1 of the Rules applicable to the said Case III shall (except where the context otherwise requires) be construed and have effect as including the public revenue of any Government whatsoever and the revenue of any public authority or institution in any country outside Ireland.

(2) Where a banker or any other person in Ireland, by means of coupons received from another person or otherwise on his behalf, obtains payment of any foreign dividends elsewhere than in Ireland, the tax under Schedule C of the Income Tax Act, 1918, shall extend to those dividends, and the person obtaining payment of the said dividends shall be treated for the purposes of the paying agents rules as if he were intrusted with the payment thereof.

(3) Where a banker in Ireland sells or otherwise realises coupons for any foreign dividends and pays over the proceeds of such realisation to or carries such proceeds to the account of any person, the tax under Schedule C of the Income Tax Act, 1918, shall extend to such proceeds and the paying agents rules shall apply to such proceeds as if they were dividends to which those rules apply and to the said banker as if he were a person intrusted with the payment thereof.

(4) Where a dealer in coupons in Ireland purchases coupons for any foreign dividends otherwise than from a banker or another dealer in coupons, the tax under Schedule C of the Income Tax Act, 1918, shall extend to the price paid on such purchase, and the paying agents rules shall apply to such price as if it were a dividend to which those rules apply and to the said dealer as if he were a person intrusted with the payment thereof.

(5) Where tax in respect of any such proceeds as are mentioned in sub-section (3) of this section or in respect of any such price as is mentioned in sub-section (4) of this section has been accounted for under the paying agents rules by any banker or any dealer in coupons and the Special Commissioners are satisfied that the dividends payable on the coupons in relation to which such proceeds or such price arises have been subsequently paid in such manner that tax has been deducted from such dividends under any of the rules applicable to Schedule C of the Income Tax Act, 1918, the tax so deducted shall be repaid.

(6) The foregoing provisions (except sub-section (1) ) of this section shall apply and have effect for the purposes of Rule 7 of the Miscellaneous Rules applicable to Schedule D of the Income Tax Act, 1918, with the necessary modifications.

(7) In this section—

the expression “paying agents rules” means that set of Rules applicable to Schedule C of the Income Tax Act, 1918, the heading of which begins with the words “Rules as to interest, etc., with the payment of which persons”,

the word “banker” includes a person acting as a banker,

the words and expression “dividends”, “coupons”, and “coupons for any dividends” have the same meanings as they respectively have in the paying agents rules,

the expression “foreign dividends” means dividends payable elsewhere than in Ireland, whether they are or are not also payable in Ireland.

(8) Schedule C and Schedule D of the Income Tax Act, 1918, shall have, and shall be deemed always to have had, effect subject to the provisions of this section.