Finance Act, 1955
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Payment of interest on stock of council of county, corporation of county or other borough or council of urban district. |
5.—(1) Any stock under section 87 of the Local Government Act, 1946 (No. 24 of 1946), issued after the passing of this Act shall be deemed to be securities issued under the authority of the Minister for Finance within the meaning of section 2 of the Finance Act, 1924 (No. 27 of 1924), and that section shall apply accordingly. | |
(2) (a) Rule 6 of the Miscellaneous Rules applicable to Schedule D of the Income Tax Act, 1918, and Rules 19 and 21 of the General Rules applicable to Schedules A, B, C, D and E of that Act shall not apply to interest (in this subsection referred to as the said interest) which, by direction of the Minister for Finance given under section 2 of the Finance Act, 1924 , as applied by this section, is paid without deduction of tax. | ||
(b) Where paragraph (a) of this subsection applies in relation to the council of a county, corporation of a county or other borough or council of an urban district (in this paragraph referred to as the local authority), the total tax payable by the local authority, by deduction or otherwise, for any year of assessment shall not exceed a sum to be ascertained by first computing the total tax which, but for this section, would have been payable by the local authority, by deduction or otherwise, for that year and then deducting therefrom a sum equal to tax on the amount of the said interest paid for that year by the local authority. | ||
(3) There shall be added to Rule 1 of Case III of Schedule D of the Income Tax Act, 1918, the following clause, that is to say: | ||
“(j) interest on stock under section 87 of the Local Government Act, 1946 (No. 24 of 1946), in cases where such interest is paid without deduction of tax.” |