Finance Act, 1957

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Amendment of section 7 of Finance Act, 1932.

4.—(1) In relation to stocks, shares and securities of a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods—

(a) the following subsection shall, with effect as from the commencement of section 7 of the Finance Act, 1932 (No. 20 of 1932), be substituted for subsection (2) of that section:

“(2) This section shall apply to all stocks, shares, and securities issued after the passing of this Act 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 (Consolidation) Act, 1908 , 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) of this section 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.”; and

(b) the following subsection shall, with effect as from the commencement of section 7 of the Finance Act, 1932 , be substituted for subsections (4) and (5) of that section:

“(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 paragraph (a) of subsection (2) of this section or, as respects such stock, share or security, all or any of the conditions set forth in paragraphs (b) and (c) of subsection (2) of this section, or in subsection (3) of this section, have ceased to be complied with.”

(2) In relation to stocks, shares and securities of a company whose trade or business consists wholly or mainly of the production for sale of manufactured goods, section 7 of the Finance Act, 1935 (No. 28 of 1935), is hereby repealed with effect as from the commencement of that section.

(3) Where a certificate is given by virtue of this section in respect of any stocks, shares or securities, relief or repayment under subsection (1) of section 7 of the Finance Act, 1932 , shall, nevertheless, not be granted in respect of any dividend or interest on the stocks, shares or securities which is payable prior to the 6th day of April, 1958.

(4) Nothing in this section shall—

(a) affect the validity of any certificate under subsection (2) of section 7 of the Finance Act, 1932 , issued before the passing of this Act, or

(b) in a case in which such a certificate has been so issued, prevent the issue of a certificate under subsection (4) (as originally enacted) of section 7 of the Finance Act, 1932 ,

(5) Where—

(a) a company (in this subsection referred to as the holding company) holds beneficially more than ninety 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) of section 7 of the Finance Act, 1932 , as amended by subsection (1) of this section, but for paragraph (b) of that subsection as so amended, and

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

subsections (1), (2) and (3) of this section 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.