Finance Act, 1974

Interest payments by companies and to non-residents.

31.—(1) In this section “company” means any body corporate.

(2) Where any yearly interest charged with tax under Schedule D is paid—

(a) by a company otherwise than when paid in a fiduciary or representative capacity to a person whose usual place of abode is in the State, or

(b) by any person to another person whose usual place of abode is outside the State,

in respect of any period beginning on or after the 10th day of January, 1974, the person by or through whom the payment is made shall, on making the payment, deduct out of it a sum representing the amount of the tax thereon at the standard rate in force at the time of the payment and subsections (2) to (5) of section 434 of the Income Tax Act, 1967 , shall apply to such payments as they apply to payments specified in subsection (1) of that section.

(3) Subject, as respects paragraph (a), to section 50 (4), subsection (2) shall not apply to—

(a) interest on a loan secured by an instalment promissory note of the kind referred to in section 50 (2), or

(b) interest paid in the State on an advance from a bank carrying on a bona fide banking business in the State, or

(c) interest paid by such a bank in the ordinary course of such business, or

(d) interest paid by a company which has been authorised by the Revenue Commissioners to pay interest without deduction of income tax, or

(e) interest on any securities in respect of which the Minister for Finance has given a direction under section 466 of the Income Tax Act, 1967 , or

(f) interest paid without deduction of tax by virtue of section 221 of the Income Tax Act, 1967 .