Taxes Consolidation Act, 1997
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CHAPTER 4 Interest payments by certain deposit takers | ||
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Interpretation ( Chapter 4 ). [FA 86 s31; FA91 s11; FA92 s22(1)(a); F(No.2)A92 s3(a); FA93 s15(1)(a); FA95 s11(1) and s167] |
256.—(1) In this Chapter— | |
“amount on account of appropriate tax” shall be construed in accordance with section 258 (4); | ||
“appropriate tax”, in relation to a payment of relevant interest, means a sum representing income tax on the amount of that payment— | ||
(a) in the case of a relevant deposit or relevant deposits held in a special savings account, at the rate of 15 per cent, and | ||
(b) in the case of any other relevant deposit, at the standard rate in force at the time of payment; | ||
“building society” means a building society within the meaning of the Building Societies Act, 1989 , or a society established in accordance with the law of any other Member State of the European Communities which corresponds to that Act; | ||
“deposit” means a sum of money paid to a relevant deposit taker on terms under which it will be repaid with or without interest and either on demand or at a time or in circumstances agreed by or on behalf of the person making the payment and the person to whom it is made; | ||
“foreign currency” means a currency other than the currency of the State; | ||
“interest” means any interest of money whether yearly or otherwise, including any amount, whether or not described as interest, paid in consideration of the making of a deposit, and, as respects a building society, includes any dividend or other distribution in respect of shares in the society; but any amount consisting of an excess of the amount received on the redemption of any holding of A.C.C. Bonus Bonds — First Series, issued by ACC Bank plc, over the amount paid for the holding shall not be treated as interest for the purposes of this Chapter; | ||
“pension scheme” means an exempt approved scheme within the meaning of section 774 or a retirement annuity contract or a trust scheme to which section 784 or 785 applies; | ||
“relevant deposit” means a deposit held by a relevant deposit taker, other than a deposit— | ||
(a) which is made by, and the interest on which is beneficially owned by— | ||
(i) a relevant deposit taker, | ||
(ii) the National Treasury Management Agency, | ||
(iii) the State acting through the National Treasury Management Agency, | ||
(iv) the Central Bank of Ireland, or | ||
(v) Icarom plc, | ||
(b) which is a debt on a security issued by the relevant deposit taker and listed on a stock exchange, | ||
(c) which, in the case of a relevant deposit taker resident in the State for the purposes of corporation tax, is held at a branch of the relevant deposit taker situated outside the State, | ||
(d) which, in the case of a relevant deposit taker not resident in the State for the purposes of corporation tax, is held otherwise than at a branch of the relevant deposit taker situated in the State, | ||
(e) which is a deposit denominated in a foreign currency made— | ||
(i) by a person other than an individual before the 1st day of January, 1993, or | ||
(ii) by an individual before the 1st day of June, 1991, | ||
but, where on or after the 1st day of June, 1991, and before the 1st day of January, 1993, a deposit denominated in a foreign currency is made by an individual to a relevant deposit taker with whom the individual had a deposit denominated in the same foreign currency immediately before the 1st day of June, 1991, such a deposit shall not be regarded as a relevant deposit, | ||
(f) (i) which is made on or after the 1st day of January, 1993, by, and the interest on which is beneficially owned by— | ||
(I) a company which is or will be within the charge to corporation tax in respect of the interest, or | ||
(II) a pension scheme, | ||
and | ||
(ii) in respect of which a declaration of the kind mentioned in section 265 has been made to the relevant deposit taker, | ||
(g) in respect of which— | ||
(i) no person resident in the State is beneficially entitled to any interest, and | ||
(ii) a declaration of the kind mentioned in section 263 has been made to the relevant deposit taker, or | ||
(h) (i) the interest on which is exempt— | ||
(I) from income tax under Schedule D by virtue of section 207 (1)(b), or | ||
(II) from corporation tax by virtue of section 207 (1)(b) as it applies for the purposes of corporation tax under section 76 (6), | ||
and | ||
(ii) in respect of which a declaration of the kind mentioned in section 266 has been made to the relevant deposit taker; | ||
“relevant deposit taker” means any of the following persons— | ||
(a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971 , or 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 that section, | ||
(b) a building society, | ||
(c) a trustee savings bank within the meaning of the Trustee Savings Banks Acts, 1863 to 1989, | ||
(d) ACC Bank plc, | ||
(e) ICC Bank plc, | ||
(f) ICC Investment Bank Limited, | ||
(g) the Post Office Savings Bank; | ||
“relevant interest” means interest paid in respect of a relevant deposit; | ||
“return” means a return under section 258 (2); | ||
“special savings account” means an account opened on or after the 1st day of January, 1993, in which a relevant deposit or relevant deposits made by an individual is or are held and in respect of which— | ||
(a) the conditions in section 264 (1) are satisfied, and | ||
(b) a declaration of the kind mentioned in section 264 (2) has been made to the relevant deposit taker. | ||
(2) For the purposes of this Chapter— | ||
(a) any amount credited as interest in respect of a relevant deposit shall be treated as a payment of interest, and references in this Chapter to relevant interest being paid shall be construed accordingly, | ||
(b) any reference in this Chapter to the amount of a payment of relevant interest shall be construed as a reference to the amount which would be the amount of that payment if no appropriate tax were to be deducted from that payment, and | ||
(c) a deposit shall be treated as held at a branch of a relevant deposit taker if it is recorded in its books as a liability of that branch. |