Income Tax Act, 1967.

SCHEDULE 11

Purchase and Sale of Securities: Appropriate Amount in Respect of the Interest

Sections 368 , 369 , 370 .

1. For the purposes of section 368, the appropriate amount in respect of the interest is the appropriate proportion of the net interest receivable by the first buyer.

2. For the purposes of sections 369 and 370, the appropriate amount in respect of the interest is the gross amount corresponding with the appropriate proportion of the net interest receivable by the first buyer.

3. (1) For the purposes of paragraphs 1 and 2, the appropriate proportion is the proportion which—

(a) the period beginning with the first relevant date and ending with the day before the day on which the first buyer bought the securities,

bears to—

(b) the period beginning with the first relevant date and ending with the day before the second relevant date.

(2) In subparagraph (1)—

“the first relevant date” means—

(a) in case the securities have not been quoted in the official list of the Dublin Stock Exchange at a price excluding the value of the interest payment last payable before the interest receivable by the first buyer or, the securities having been so quoted, the date of the quotation was not the earliest date on which they could have been so quoted if an appropriate dealing in the securities had taken place—the said earliest date, and

(b) in any other case—the date on which the securities have been first so quoted;

“the second relevant date” means—

(a) in case the securities have not been quoted in the official list of the Dublin Stock Exchange at a price excluding the value of the interest receivable by the first buyer or, the securities having been so quoted, the date of the quotation was not the earliest date on which they could have been so quoted if an appropriate dealing in the securities had taken place—the said earliest date, and

(b) in any other case—the date on which the securities have been first so quoted.

(3) Where the interest receivable by the first buyer was the first interest payment payable in respect of the securities, subparagraph (1) shall have effect with the substitution, for the references to the first relevant date, of the beginning of the period for which the interest was payable:

Provided that, where the capital amount of the securities was not fully paid at the beginning of the said period and one or more instalments of capital were paid during that period—

(a) the interest shall be treated as divided into parts, calculated by reference to the amount of the interest attributable to the capital paid at or before the beginning of the said period and the amount thereof attributable to each such instalment, and

(b) treating each of the said parts as interest payable for the said period or, where the part was calculated by reference to any such instalment, as interest payable for the part of the said period beginning with the payment of the instalment, there shall be calculated, in accordance with the foregoing provisions of this paragraph, the amount constituting the appropriate proportion of each part, and

(c) the appropriate proportion of the interest for the purposes of paragraphs 1 and 2 shall be the proportion thereof constituted by the sum of the said amounts.

(4) In relation to securities which are not the subject of quotations in the official list of the Dublin Stock Exchange, subparagraph (1) shall have effect with the substitution for the periods therein mentioned of such periods as in the opinion of the Special Commissioners correspond therewith in the case of the securities in question.

4. Where the securities are of a description such that the bargain price is increased, where interest is receivable by the buyer, by reference to gross interest accruing before the bargain date, the foregoing paragraphs shall not apply, but, for the purposes of each of the said sections, the appropriate amount in respect of the interest shall be the amount of the increase in the bargain price.