Finance Act, 1999

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Amendment of section 246 (interest payments by companies and to non-residents) of Principal Act.

39.—Section 246 of the Principal Act is hereby amended—

(a) in subsection (1)—

(i) by the insertion before the definition of “company” of the following:

“‘a collective investment undertaking’ means—

(a) a unit trust scheme which is or is deemed to be an authorised unit trust scheme (within the meaning of the Unit Trusts Act, 1990 ) and which has not had its authorisation under that Act revoked,

(b) any other undertaking which is an undertaking for collective investment in transferable securities within the meaning of the relevant Regulations (within the meaning of section 734) being an undertaking which holds an authorisation, which has not been revoked, issued pursuant to the relevant Regulations,

(c) a limited partnership which—

(i) has as its principal business, as expressed in the partnership agreement establishing the limited partnership, the investment of its funds in property, and

(ii) has been authorised to carry on that business, under any enactment providing for such authorisation, by the Central Bank of Ireland and which has not had its authorisation under such enactment revoked,

and

(d) any authorised investment company (within the meaning of Part XIII of the Companies Act, 1990 )—

(i) which has not had its authorisation under that Part of that Act revoked, and

(ii) (I) which has been designated in that authorisation as an investment company which may raise capital by promoting the sale of its shares to the public and has not ceased to be so designated, or

(II) where all the holders of units are collective investors;

‘collective investor’ has the same meaning as in section 734(1);”,

(ii) by the insertion after the definition of “company” of the following:

“‘relevant person’ means—

(a) a company, or

(b) a collective investment undertaking;”,

(iii) in the definition of “relevant security”—

(I) by the substitution of “in the course of carrying on relevant trading operations within the meaning of section 445 or 446” for “on or before the 31st day of December, 2005”, and

(II) by the substitution of “issued;” for “issued.”,

and

(iv) by the insertion after the definition of “relevant security” of the following:

“‘relevant territory’ means—

(a) a Member State of the European Communities other than the State, or

(b) not being such a Member State, a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.”,

(b) in subsection (3)—

(i) in paragraph (f), by the substitution of “section 700,” for “section 700, or”,

(ii) in paragraph (g), by the substitution of “distribution, or” for “distribution.”, and

(iii) by the insertion after paragraph (g) of the following:

“(h) interest, other than interest referred to in paragraphs (a) to (g), paid by a relevant person in the ordinary course of a trade or business carried on by that person to a company resident in a relevant territory except where such interest is paid to that company in connection with a trade or business which is carried on in the State by that company through a branch or agency.”,

and

(c) in subsection (4), by the substitution of the following paragraphs for paragraphs (a) and (b):

“(a) as if in section 445 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (8), the Minister may give a certificate certifying that such trading operations of a qualified company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purposes of this section.’,

and

(b) as if in section 446 the following subsection were substituted for subsection (2) of that section:

‘(2) Subject to subsections (7) and (9), the Minister may give a certificate certifying that such trading operations of a company as are specified in the certificate are, with effect from a date specified in the certificate, relevant trading operations for the purposes of this section.’.”.