Income Tax Act, 1967.

Interest, etc., not payable out of taxed profits.

434.—(1) Upon payment of any interest of money, annuity, or other annual payment charged with tax under Schedule D, or of any royalty or other sum paid in respect of the user of a patent, not payable, or not wholly payable, out of profits or gains brought into charge, the person by or through whom any such payment is made shall deduct thereout a sum representing the amount of the tax thereon at the rate of tax in force at the time of the payment.

(2) Where any such payment as aforesaid is made by or through any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment, or of so much thereof as is not made out of profits or gains brought into charge, and of the tax deducted out of the payment or out of that part thereof, and the inspector shall assess and charge the payment of which an account is so delivered on that person.

(3) The inspector may, where any person has made default in delivering an account required by this section, or where he is not satisfied with the account so delivered, make an assessment according to the best of his judgment.

(4) In subsections (2) and (3) “the inspector” means such inspector as the Revenue Commissioners may direct.

(5) All the provisions of this Act relating—

(a) to persons who are to be chargeable with income tax and to income tax assessments;

(b) to appeals against such assessments;

(c) to the collection and recovery of income tax; and

(d) to the rehearing of appeals and to cases to be stated for the opinion of the High Court,

shall, so far as they are applicable, apply to the charge, assessment, collection and recovery of income tax under this section.

(6) The amount of annuities which an assurance company carrying on the business of granting annuities is entitled, for the purposes of this section, to treat as having been paid out of profits or gains brought into charge to tax, shall not exceed the amount of the taxed income of its annuity fund.

(7) The provisions of this section shall, subject to any necessary modifications, apply in the case of a payment which has been made before the passing of this Act unless at such passing the tax deducted out of the payment stands paid to the Revenue Commissioners.