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TAXES CONSOLIDATION ACT, 1997
Interpretation ( Chapter 2 ).
60. —In this Chapter—
“dividends to which this Chapter applies” means any interest, dividends or other annual payments payable out of or in respect of the stocks, funds, shares or securities of any body of persons not resident in the State, but does not include any payment to which section 237 or 238 applies, and references to dividends shall be construed accordingly;
“banker” includes a person acting as a banker;
references to coupons in relation to any dividends include warrants for or bills of exchange purporting to be drawn or made in payment of those dividends.
Dividends entrusted for payment in the State.
[ITA67 s460; F(MP)A68 s3(3) and Sch PtII]
61. —Where dividends to which this Chapter applies are entrusted to any person in the State for payment to any persons in the State—
(a) the dividends shall be assessed and charged to tax under Schedule D by the Revenue Commissioners, and
Dividends paid outside the State and proceeds of sale of dividend coupons.
(a) a banker or any other person in the State, by means of coupons received from another person or otherwise on that other person's behalf, obtains payment of any dividends to which this Chapter applies elsewhere than in the State,
(b) a banker in the State sells or otherwise realises coupons for any dividends to which this Chapter applies and pays over the proceeds of such realisation to or carries such proceeds to the account of any person, or
(c) a dealer in coupons in the State purchases coupons for any dividends to which this Chapter applies otherwise than from a banker or another dealer in coupons,
then, the tax under Schedule D shall extend—
(i) in the case mentioned in paragraph (a), to the dividends,
(ii) in the case mentioned in paragraph (b), to the proceeds of the realisation, and
(iii) in the case mentioned in paragraph (c), to the price paid on such purchase,
Exemption of dividends of nonresidents.
[ITA67 s462; F(MP)A68 s3(2) and Sch PtI]
63. —(1) (a) No tax shall be chargeable in respect of dividends to which this Chapter applies which are payable in the State where it is proved to the satisfaction of the Revenue Commissioners that the person owning the stocks, funds, shares or securities and entitled to the income arising from those stocks, funds, shares or securities is not resident in the State but, except where provided by the Income Tax Acts, no allowance shall be given or repayment made in respect of the tax on dividends to which this Chapter applies which are payable in the State.
(b) Where the dividends referred to in paragraph (a) are from stocks, funds, shares or securities which are held under any trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call on the trustees at any time to transfer the stocks, funds, shares or securities to such person absolutely free from any trust, such person shall for the purposes of this section be deemed to be the person owning the stocks, funds, shares or securities.
(2) Relief under this section may be given by the Revenue Commissioners either by means of allowance or repayment on a claim being made to them for that purpose.
(3) Any person aggrieved by a decision of the Revenue Commissioners on any question as to residence arising under this section may, by notice in writing to that effect given to the Revenue Commissioners within 2 months from the date on which notice of the decision is given to such person, make an application to have such person's claim for relief heard and determined by the Appeal Commissioners.
(4) Where an application is made under subsection (3), the Appeal Commissioners shall hear and determine the claim in the like manner as an appeal made to them against an assessment, and the provisions of the Income Tax Acts relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.
Interest on quoted Eurobonds.
[ITA67 s462A; FA94 s15]
64. —(1) In this section—
“appropriate inspector” means the inspector authorised by the Revenue Commissioners for the purposes of this section;
“quoted Eurobond” means a security which—
(a) is issued by a company,
(b) is quoted on a recognised stock exchange,
(c) is in bearer form, and
(d) carries a right to interest;
“recognised clearing system” means any system for clearing quoted Eurobonds or relevant foreign securities which is for the time being designated for the purposes of this section by order of the Revenue Commissioners as a recognised clearing system;
“relevant foreign securities” means—
(a) any such stocks, funds, shares or securities as give rise to dividends to which this Chapter applies, or
(b) any such securities as give rise to foreign public revenue dividends within the meaning of section 32 ;
“relevant person” means—
(a) the person by or through whom interest is paid, or
(b) a banker or any other person, or a dealer in coupons, referred to in section 62 ,
as the case may be.
(2) Section 246 (2) shall not apply to interest paid on any quoted Eurobond where—
(a) the person by or through whom the payment is made is not in the State, or
(b) the payment is made by or through a person in the State, and—
(i) the quoted Eurobond is held in a recognised clearing system, or
(ii) the person who is the beneficial owner of the quoted Eurobond and who is beneficially entitled to the interest is not resident in the State and has made a declaration of the kind mentioned in subsection (7).
(3) In a case within subsection (2)(b), the person by or through whom the payment is made shall deliver to the appropriate inspector—
(a) on demand by the appropriate inspector, an account of the amount of any such payment, and
(b) not later than 12 months after making any such payment and unless within that time that person delivers an account with respect to the payment under paragraph (a), a written statement specifying that person's name and address and describing the payment.
(4) Where by virtue of any provision of the Tax Acts interest paid on any quoted Eurobond is deemed to be income of a person other than the person who is the beneficial owner of the quoted Eurobond, subsection (2)(b)(ii) shall apply as if it referred to that other person.
(5) Sections 62 and 63 and, in so far as it relates to section 62 , Schedule 2 shall apply in relation to interest on quoted Eurobonds as they would apply in relation to dividends to which this Chapter applies—
(a) if in paragraph (a) of section 62 the following were substituted for “applies elsewhere than in the State”:
(i) the payment of those dividends was not made by or entrusted to any person in the State, or
(ii) the stocks, funds and securities in respect of which those dividends are paid are held in a recognised clearing system”,
(b) if in section 63 the following were substituted for subsection (1)(a):
“(1) (a) No tax shall be chargeable in respect of dividends to which this Chapter applies which are payable in the State where the person who is the beneficial owner of the stocks, funds, shares or securities and who is beneficially entitled to the dividends is not resident in the State and has made a declaration of the kind mentioned in section 64 (7).”,
(6) An order referred to in the definition of “recognised clearing system”—
(a) may contain such transitional and other supplemental provisions as appear to the Revenue Commissioners to be necessary or expedient, and
(b) may be varied or revoked by a subsequent order.
(7) The declaration referred to in subsection (2)(b)(ii) or in subsection (1)(a) of section 63 (as construed by reference to subsection (5)(b)) shall be a declaration in writing to a relevant person which—
(a) is made by a person (in this section referred to as “the declarer”) to whom any interest in respect of which the declaration is made is payable by the relevant person, and is signed by the declarer,
(b) is made in such form as may be prescribed or authorised by the Revenue Commissioners,
(c) declares that at the time the declaration is made the person who is beneficially entitled to the interest is not resident in the State,
(d) contains as respects the person mentioned in paragraph (c)—
(i) the name of the person,
(ii) the address of that person's principal place of residence, and
(iii) the name of the country in which that person is resident at the time the declaration is made,
(e) contains an undertaking by the declarer that, if the person referred to in paragraph (c) becomes resident in the State, the declarer will notify the relevant person accordingly, and
(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this section.
(8) (a) A relevant person shall—
(i) keep and retain for the longer of the following periods—
(I) a period of 6 years, and
(II) a period which ends not earlier than 3 years after the latest date on which interest in respect of which the declaration was made is paid,
(ii) on being so required by notice given in writing by an inspector, make available to the inspector within the time specified in the notice,
all declarations of the kind mentioned in this section which have been made in respect of interest paid by the relevant person.
(b) The inspector may examine or take extracts from or copies of any declarations made available under paragraph (a).