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246A.—(1) In this section—
‘approved denomination’, in relation to a wholesale debt instrument, means a denomination of not less than—
(a) in the case of an instrument denominated in euro, €500,000;
(b) in the case of an instrument denominated in United States Dollars, US$500,000; or
(c) in the case of an instrument denominated in a currency other than euro or United States Dollars, the equivalent in that other currency of €500,000;
and, for the purposes of this definition, the equivalent of an amount of euro in another currency shall be determined by reference to the rate of exchange—
(i) in the case of instruments issued under a programme, at the time the programme under which the instrument is to be issued is first publicised; or
(ii) in the case of all other instruments, on the date of issue of the instrument;
‘Revenue officer’ means an officer of the Revenue Commissioners;
‘certificate of deposit’ means an instrument, either in physical or electronic form, relating to money in any currency which has been deposited with the issuer or some other person, being an instrument—
(a) issued by a financial institution,
(b) which recognises an obligation to pay a stated amount to bearer or to order, with or without interest, and
(c) (i) in the case of instruments held in physical form, by the delivery of which, with or without endorsement, the right to receive the stated amount is transferable, or
(ii) in the case of instruments held in electronic form, in respect of which the right to receive the stated amount is transferable;
‘commercial paper’ means a debt instrument, either in physical or electronic form, relating to money in any currency, which—
(a) is issued by—
(i) a financial institution, or
(ii) a company that is not a financial institution,
(b) recognises an obligation to pay a stated amount,
(c) carries a right to interest or is issued at a discount or at a premium, and
(d) matures within 2 years;
‘financial institution’ has the same meaning as it has in section 906A;
‘relevant person’ means the person by or through whom a payment in respect of a wholesale debt instrument is made;
‘tax reference number’ has the meaning assigned to it by section 885;
‘wholesale debt instrument’ means a certificate of deposit or commercial paper, as appropriate.
(2) (a) In this section and in any other provision of the Tax Acts or the Capital Gains Tax Acts which applies this subsection, ‘recognised clearing system’ means the following clearing systems—
(i) Bank One NA, Depository and Clearing Centre,
(ii) Central Moneymarkets Office,
(iii) Clearstream Banking SA,
(iv) Clearstream Banking AG,
(v) CREST,
(vi) Depository Trust Company of New York,
(vii) Euroclear,
(viii) Monte Titoli SPA,
(ix) Netherlands Centraal Instituut voor Giraal Effectenverkeer BV,
(x) National Securities Clearing System,
(xi) Sicovam SA,
(xii) SIS Sega Intersettle AG, and
(xiii) any other system for clearing securities which is for the time being designated, for the purposes of this section or any other provision of the Tax Acts or the Capital Gains Tax Acts which applies this subsection, by order of the Revenue Commissioners under paragraph (b) as a recognised clearing system.
(b) For the purposes of this section and sections 64 and 739B, the Revenue Commissioners may, designate by order one or more than one system for clearing securities as a ‘recognised clearing system’.
(c) An order of the Revenue Commissioners under paragraph (b) may—
(i) contain such transitional and other supplemental provisions as appear to the Revenue Commissioners to be necessary or expedient, and
(ii) be varied or revoked by a subsequent order.
(3) As respects any payment made in respect of a wholesale debt instrument—
(a) if either—
(i) the person by whom the payment is made, or
(ii) the person through whom the payment is made,
is not resident in the State and the payment is not made by or through a branch or agency through which a company not resident in the State carries on a trade or business in the State, and
(I) the wholesale debt instrument is held in a recognised clearing system, and
(II) the wholesale debt instrument is of an approved denomination,
then—
(A) section 246(2) shall not apply to that payment, and
(B) the wholesale debt instrument shall not be treated as a relevant deposit (within the meaning of section 256) for the purposes of Chapter 4 of this Part,
or
(b) (i) if either—
(I) the person by whom the payment is made, or
(II) the person through whom the payment is made,
is resident in the State or the payment is made either by or through a branch or agency through which a company not resident in the State carries on a trade or business in the State,
and
(ii) (I) the wholesale debt instrument is held in a recognised clearing system and is of an approved denomination, or
(II) the person who is beneficially entitled to the interest is a resident of the State and has provided the person's tax reference number to the relevant person, or
(III) the person who is the beneficial owner of the wholesale debt instrument and who is beneficially entitled to the interest is not resident in the State and has made a declaration of the kind described in subsection (5),
then, subject to subsection (4) or (5)—
(A) section 246(2) shall not apply to that payment, and
(B) the wholesale debt instrument shall not be treated as a relevant deposit (within the meaning of section 256) for the purposes of Chapter 4 of this Part.
(4) A relevant person who makes a payment in respect of a wholesale debt instrument shall as respects a case which is within paragraph (b)(ii)(I) or (b)(ii)(II), as the case may be, of subsection (3) and which is not within paragraph (a) of that subsection—
(a) (i) be regarded as a person to whom section 891(1) applies as respects that case, if that provision would not otherwise apply to that person,
(ii) be regarded as a ‘relevant person’ (within the meaning of section 894) for the purposes of that section as respects that case, if that person would not otherwise be a ‘relevant person’ (within that meaning), and
(iii) in addition to the matters to be included in a return to be made under section 891 for a chargeable period (within the meaning of section 321(2)), include on that return, in respect of that case, the tax reference number of the person to whom the payment was made,
and
(b) on being so required by notice given in writing by a Revenue officer, in relation to any person named by the officer in the notice, deliver an account in writing of the amount of any payment made in respect of a wholesale debt instrument to that person together with details of the person's name and address and tax reference number if such details have not been included in a return made by that person under section 891.
(5) The declaration referred to in subsection (3)(b)(ii)(III) is 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 payment 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 that 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 shall notify the relevant person accordingly, and
(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this section.
(6) Where a relevant person is satisfied that any payment made by that person in respect of a wholesale debt instrument has been made to a person to whom paragraph (b)(ii)(II) or (b)(ii)(III), as the case may be, of subsection (3) applies, the relevant person shall be entitled to continue to treat that person as a person to whom that paragraph applies until such time as the relevant person is in possession, or aware, of information which can reasonably be taken to indicate that that paragraph no longer applies to that person.
(7) (a) A relevant person shall—
(i) keep and retain for the longer of the following—
(I) a period of 6 years after the declaration is made, and
(II) a period which ends not earlier than 3 years after the latest date on which any payment in respect of which the declaration was made is paid,
and
(ii) on being required by notice given in writing by a Revenue officer, make available to that officer within the time specified in the notice,
all declarations of the kind mentioned in this section that have been made in respect of any payment made by the relevant person.
(b) A Revenue officer may examine or take extracts from or copies of any declarations made available under paragraph (a).”.
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