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845A.—(1) In this section, ‘bank’ means—
(a) a person who is a holder of a licence granted under
section 9
of the
Central Bank Act, 1971
, or
(b) a person who holds a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under the said section 9.
(2) This subsection shall apply to so much of any interest as—
(a) is a distribution by virtue only of section 130(2)(d)(iv),
(b) is payable by a bank carrying on a bona fide banking business in the State and would but for section 130(2)(d)(iv) be deductible as a trading expense in computing the amount of the bank's income from its banking business, and
(c) represents no more than a reasonable commercial return for the use of the principal in respect of which the interest is paid by the bank.
(3) Where a bank proves that subsection (2) applies to any interest payable by it for an accounting period and elects to have that interest treated as not being a distribution for the purposes of section 130(2)(d)(iv), then, section 130(2)(d)(iv) shall not apply to that interest.
(4) An election under subsection (3) in relation to interest payable by a bank for an accounting period shall be made in writing to the inspector together with the bank's return of its profits for the period.”.
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