Finance Act, 1983
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Chapter IV Anti-avoidance and Anti-evasion | ||
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Amendment of section 175 (power to obtain information as to interest paid or credited without deduction of tax) of Income Tax Act, 1967. |
17.—For the purpose of preventing the evading by persons ordinarily resident in the State of liability to tax— | |
(a) by the placing of money on deposit with different branches or offices maintained by or in connection with a trade or business in the ordinary course of which interest becomes payable or creditable in respect of that money and which is carried on by a person who is required by notice from the inspector given under section 175 of the Income Tax Act, 1967 , to make a return of interest paid or credited by him in respect of money received or retained by him, or | ||
(b) by the making of false declarations under subsection (4) of the said section 175, | ||
it is hereby enacted as follows:— | ||
(1) Section 13 of the Finance Act, 1968 , shall not apply or have effect, in relation to any return of interest paid or credited referred to in the said section 175, where the return is of interest paid or credited during a year beginning on or after the 10th day of February, 1982. | ||
(2) The said section 175 is hereby amended, as respects any interest paid or credited at any time after the passing of this Act— | ||
(a) by the substitution in subsection (4) for “the person paying or crediting the interest shall not be required to include the interest in any such return.” of “the person paying or crediting the interest shall not be required to include the interest in any such return: | ||
Provided that: | ||
(i) if the person on whom the notice is served is not satisfied that the person who served the notice was ordinarily resident outside the State when the interest was paid or credited— | ||
(A) there shall be given to the person on whom the notice is served an affidavit, made by the person who served the notice, stating his name and address and the country in which he was ordinarily resident when the interest was paid or credited, and | ||
(B) if the person who served the notice was not beneficially entitled to that interest when it was paid or credited, the affidavit shall state, in addition to the particulars specified in paragraph (A), the name and address of the person who was so entitled and the country in which he was ordinarily resident when the interest was paid or credited, and | ||
(ii) if the person on whom the notice is served is satisfied that the person who served the notice was not ordinarily resident in the State when the interest was paid or credited and, if the latter person declares in the notice, or in a subsequent notice served on the person on whom the first-mentioned notice was served, that he was not beneficially entitled to the interest when it was paid or credited, he shall, if the person so entitled (hereafter referred to as the ‘beneficial owner’) is ordinarily resident in the State, state in one of the notices aforesaid, or in a subsequent notice served on the person on whom the first-mentioned notice was served, the name and address of the beneficial owner.”, | ||
and | ||
(b) by the insertion after the said subsection (4) of the following subsection: | ||
“(5) A person to whom subsection (1) applies— | ||
(a) shall keep and retain any notice served upon him in accordance with subsection (4), and any affidavit that accompanied the notice, for a period of six years from the date of the service of the notice, | ||
(b) shall, if requested in writing by the Revenue Commissioners to do so, inform the Revenue Commissioners, within the time specified in the request, whether a notice has been served upon him in accordance with subsection (4) by such person as is named, and whose address is stated, in the request, and | ||
(c) shall, if requested in writing by the Revenue Commissioners to do so, furnish to the Revenue Commissioners, within the time specified in the request, such notice served upon him in accordance with subsection (4) as is specified in the request and the affidavit that accompanied that notice.”, | ||
and the said subsection (4), as so amended, is set out in the Table to this subsection. | ||
TABLE | ||
(4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest— | ||
(a) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and | ||
(b) requests that the interest shall not be included in any return under this section, | ||
the person paying or crediting the interest shall not be required to include the interest in any such return: | ||
Provided that: | ||
(i) if the person on whom the notice is served is not satisfied that the person who served the notice was ordinarily resident outside the State when the interest was paid or credited— | ||
(A) there shall be given to the person on whom the notice is served an affidavit, made by the person who served the notice, stating his name and address and the country in which he was ordinarily resident when the interest was paid or credited, and | ||
(B) if the person who served the notice was not beneficially entitled to that interest when it was paid or credited, the affidavit shall state, in addition to the particulars specified in paragraph (A), the name and address of the person who was so entitled and the country in which he was ordinarily resident when the interest was paid or credited, and | ||
(ii) if the person on whom the notice is served is satisfied that the person who served the notice was not ordinarily resident in the State when the interest was paid or credited and, if the latter person declares in the notice, or in a subsequent notice served on the person on whom the first-mentioned notice was served, that he was not beneficially entitled to the interest when it was paid or credited, he shall, if the person so entitled (hereafter referred to as the “beneficial owner”) is ordinarily resident in the State, state in one of the notices aforesaid, or in a subsequent notice served on the person on whom the first-mentioned notice was served, the name and address of the beneficial owner. |