Finance Act, 1985

Securities issued by the Minister for Finance.

69.—(1) In this section—

“control” shall be construed in accordance with subsections (2) to (6) of section 102 of the Corporation Tax Act, 1976 , with the substitution in subsection (6) for “five or fewer participators” of “persons resident in a relevant territory”;

“foreign company” means a company—

(a) which is not resident in the State, and

(b) which is under the control of a person or persons resident in a relevant territory;

“relevant territory” means the United States of America or a territory with the government of which arrangements having the force of law by virtue of section 361 of the Income Tax Act, 1967 , have been made;

“relevant trade” means a trade carried on wholly or mainly in the State, but does not include a trade consisting wholly or partly of banking within the meaning of the Central Bank Act, 1971 , assurance business within the meaning of section 3 of the Insurance Act, 1936 , selling goods by retail or dealing in securities:

Provided that goods shall be deemed for the purposes of this definition not to be sold by retail if they are sold—

(a) to a person who carries on a trade of selling goods of the class to which the goods so sold to him belong, or

(b) to a person who uses goods of that class for the purposes of a trade carried on by him, or

(c) to a person, other than an individual, who uses goods of that class for the purposes of an undertaking carried on by him;

“qualifying company” means a company—

(a) (i) which is resident in the State and not resident elsewhere,

(ii) whose business consists wholly or mainly of—

(I) the carrying on of a relevant trade or relevant trades, or

(II) the holding of stocks, shares or securities of a company which exists wholly or mainly for the purpose of the carrying on of a relevant trade or relevant trades,


(iii) of which not less than 90 per cent. of its issued share capital is held by a foreign company or foreign companies, or by a person or persons who are directly or indirectly controlled by a foreign company or foreign companies;


(b) which is a foreign company carrying on a relevant trade through a branch or agency in the State.

(2) Any security which the Minister for Finance has power to issue for the purpose of raising any money or loan may be issued with a condition that any interest arising on such security shall not be liable to corporation tax so long as the security is held continuously from the date of issue in the beneficial ownership of a qualifying company to which the security was issued.