Finance Act, 1990

Amendment of section 337 (savings banks) of Income Tax Act, 1967 .

61.Section 337 of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) Any savings bank licensed under section 10 of the Trustee Savings Banks Act, 1989 , and any company to which section 57 (3) (c) (i) of that Act relates, shall be entitled to exemption from tax—

(a) in respect of its interest and dividends arising from—

(i) investments of moneys to the credit of the special account opened in pursuance of section 31 (3) of the Finance Act, 1940 , and

(ii) investments of moneys in securities of the Government as determined by the Central Bank of Ireland in accordance with the provisions of section 32 of the Trustee Savings Banks Act, 1989 ,


(b) in respect of profits or gains arising on the disposal of the said securities of the Government.”,

(b) in subsection (2)—

(i) by the substitution for that subsection (other than the proviso) of the following:

“(2) Any savings bank, whether licensed under the Trustee Savings Banks Act, 1989 , or not, shall be entitled to exemption from tax under Schedules C, D and F in respect of income of its funds, so far as such income is applied in the payment or credit of interest to any depositor:”,


(ii) by the substitution, in paragraph (a) of the proviso, of “Cases III or IV” for “Case III”,


(c) by the addition of the following subsection after subsection (2):

“(3) In this section ‘tax’ means income tax or corporation tax as the context requires.”.