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Certain interest payments by deposit takers.
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34.— (1) The Principal Act is amended—
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(a) in section 256(1)—
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(i) in the definition of “relevant deposit”—
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(I) in paragraph (g)(ii) by deleting “or” and in paragraph (h)(ii) by substituting “charity (CHY) number,” for “charity (CHY) number;”, and
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(II) by inserting the following paragraphs after paragraph (h):
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“(i) which is a deposit referred to in subsection (1A), or
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(j) which is a deposit referred to in subsection (1B);”,
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(ii) in the definition of “relevant deposit taker” by inserting the following paragraph after paragraph (ca):
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“(cb) a specified intermediary in relation only to a specified deposit,”,
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(iii) in the definition of “special term share account” by substituting “section 267A;” for “section 267A.”, and
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(iv) by inserting the following after the definition of “special term share account”:
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“ ‘ specified deposit ’ means a deposit of a class designated by the Minister for Finance for the purposes of this definition;
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‘ specified intermediary ’ means a person appointed by the National Treasury Management Agency for the purposes only of taking specified deposits.”,
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(b) by inserting the following after section 256(1):
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“(1A) A deposit shall be a deposit to which this subsection refers as respects any year of assessment if—
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(a) (i) at any time in that year of assessment the individual beneficially entitled to the interest or the individual’s spouse has attained the age of 65 years, and
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(ii) the total income of the individual for that year of assessment does not exceed the specified amount (within the meaning of section 188(2)) applicable to that individual,
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and
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(b) a declaration of the kind mentioned in section 263A has been made to the relevant deposit taker.
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(1B) A deposit shall be a deposit to which this subsection refers as respects any year of assessment if—
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(a) (i) the individual beneficially entitled to any interest paid in respect of that deposit in that year of assessment, or the individual’s spouse, is a relevant person (within the meaning of section 267(1)(b)) and the individual would, in accordance with section 267(3), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest, or
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(ii) the person entitled to any interest paid in respect of that deposit in that year of assessment is a person who is exempt from income tax by virtue of section 189A(2) and that person would, in accordance with section 267(2), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest,
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(b) a declaration of the kind mentioned in section 263B has been made to the Revenue Commissioners,
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(c) a notification of the kind mentioned in section 263C has been issued by the Revenue Commissioners to the relevant deposit taker that the deposit is a deposit to which this subsection refers and that notification is not cancelled in accordance with section 263C(2), and
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(d) the individual beneficially entitled to the interest is not an individual referred to in subsection (1A), other than an individual who is a relevant person within the meaning of section 267(1)(b),
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and where, by virtue of section 263C(2), a deposit is not a deposit to which this subsection refers as respects any year of assessment, then the Revenue Commissioners shall notify the deposit taker accordingly and where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this subsection applies from that time.”,
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(c) by inserting the following after section 261A:
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“Taxation of specified interest.
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261B.— (1) In this section ‘specified interest’ means interest arising to a person in respect of a deposit in relation to which a declaration has been made by the person under subsection (1A) or (1B) of section 256 and which is not included in relevant interest for the purposes of paragraph (c)(i)(II) of section 261.
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(2) Notwithstanding any other provision of the Income Tax Acts, the amount of taxable income on which a person is charged to income tax at the standard rate for any year of assessment shall be increased by an amount equal to the amount of that person’s specified interest on which income tax for that year falls to be computed.
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(3) Section 246(2) does not apply to a payment of specified interest if it would otherwise apply.”,
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(d) by inserting after section 263 the following:
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“Declarations to a relevant deposit taker relating to deposits of certain persons.
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263A.— (1) The declaration referred to in section 256(1A) is a declaration in writing to a relevant deposit taker which—
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(a) is made by an individual (in this section referred to as the ‘declarer’) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer,
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(b) is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners,
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(c) declares that at the time when the declaration is made—
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(i) the individual beneficially entitled to the interest in relation to the deposit or his or her spouse has attained the age of 65 years, and
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(ii) the total income of the individual for the year of assessment in which the declaration is made will not exceed the specified amount (within the meaning of section 188(2)) applicable to that individual,
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(d) contains as respects the individual, or as the case may be each of the individuals, mentioned in paragraph (c)—
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(i) the name and address of the individual,
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(ii) the date of birth of the individual who has attained the age of 65 years, and
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(iii) the individual’s PPS Number (within the meaning of section 891B),
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(e) contains an undertaking by the declarer that if the individual or, as the case may be, any of the individuals mentioned in paragraph (d) no longer satisfies the conditions set out in paragraph (a) of section 256(1A) the declarer will notify the relevant deposit taker accordingly, and
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(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.
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(2) Section 263(2) applies as respects declarations of the kind mentioned in this section as it applies as respects declarations of the kind mentioned in that section.
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Declarations to the Revenue Commissioners relating to deposits of certain persons.
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263B.— The declaration referred to in section 256(1B) is a declaration in writing to the Revenue Commissioners which—
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(a) is made by the person (in this section referred to as the ‘declarer’) to whom any interest on the deposit in respect of which the declaration is made is payable by the relevant deposit taker and is signed by the declarer,
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(b) is made in such form as may be prescribed, authorised or approved by the Revenue Commissioners,
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(c) declares that at the time when the declaration is made—
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(i) (I) the individual beneficially entitled to the interest in relation to the deposit or his or her spouse is permanently incapacitated by reason of mental or physical infirmity from maintaining himself or herself, and
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(II) the individual beneficially entitled to any interest paid in respect of that deposit in any year of assessment or his or her spouse, is a relevant person (within the meaning of section 267) and the individual would, in accordance with section 267(3), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest,
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or
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(ii) (I) the person entitled to the interest in relation to the deposit is exempt from income tax by virtue of section 189A(2), and
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(II) the person entitled to any interest paid in respect of that deposit in any year of assessment is a person referred to in section 189A(2) and would, in accordance with section 267(2), be entitled to repayment of the whole of any appropriate tax if it had been deducted from that interest,
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(d) contains as respects the person, or as the case may be, each of the persons mentioned in paragraph (c)—
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(i) the name and address of the person,
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(ii) the person’s PPS Number (within the meaning of section 891B) or where the person is not an individual, the person’s tax reference number (within the meaning of paragraphs (b) and (c) of the definition of ‘tax reference number’ in section 885),
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(iii) the name and address of the deposit taker (including the name and address of the branch of the deposit taker, if any) who holds the deposit in respect of which the declaration is made, and
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(iv) the account number or membership number, as the case may be, of the deposit in respect of which the declaration is made,
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(e) contains an undertaking by the declarer that if the person or, as the case may be, any of the persons mentioned in paragraph (d) no longer satisfies the conditions set out in paragraph (a) of section 256(1B) the declarer will notify the Revenue Commissioners accordingly, and
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(f) contains such other information as the Revenue Commissioners may reasonably require for the purposes of this Chapter.
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Notifications by the Revenue Commissioners relating to deposits of certain persons.
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263C.— (1) The notification referred to in section 256(1B) is a notification—
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(a) in writing by the Revenue Commissioners to a relevant deposit taker confirming that the account identified in the notification is to be treated as not being a relevant deposit unless and until the notification is cancelled in accordance with subsection (2),
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(b) which contains as respects the person beneficially entitled to, or the person (being one or more than one trustee) referred to in section 189A(2) entitled to, the interest in relation to the deposit mentioned in paragraph (a)—
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(i) the name and address of the person,
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(ii) the person’s PPS Number (within the meaning of section 891B) or, where the person is not an individual, the person’s tax reference number (within the meaning of paragraphs (b) and (c) of the definition of ‘tax reference number’ in section 885), and
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(iii) the account number of the deposit,
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and
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(c) which contains such other information as the Revenue Commissioners may reasonably decide for the purposes of this Chapter.
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(2) The Revenue Commissioners may at any time cancel the notification and give notice in writing to that effect to both the relevant deposit taker and the person or persons mentioned in subsection (1)(b). Where at any time the Revenue Commissioners have so notified the deposit taker, the deposit shall not be a deposit to which this section applies from that time.”,
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(e) by inserting after section 265 the following:
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“Deposits of certain persons.
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265A.— Where a return is required to be made by a relevant deposit taker under section 891 in respect of interest on a deposit which is a deposit of a kind referred to in subsection (1A) or (1B) of section 256, then that return shall, in addition to the matters which shall be included on the return by virtue of section 891, include—
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(a) the PPS Number (within the meaning of section 891B) of the person, or
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(b) where the person is not an individual, the person’s tax reference number (within the meaning of paragraphs (b) and (c) of section 885).”,
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(f) in section 267(3) by substituting “section 189A(4)” for “section 189A(3)”,
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(g) in section 891(1A) by substituting the following for paragraph (b):
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“(b) This section shall not apply in relation to any interest paid or credited by a credit union in respect of money received or retained by it, other than interest paid or credited by it in respect of a deposit to which subsection (1A) or (1B) of section 256 refers.”,
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and
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(h) in section 904A(3)(b)(ii)(I) by substituting “section 246A(3)(b)(ii)(III), 263 or 263A,” for “section 246A(3)(b)(ii)(III) or 263,”.
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(2) This section applies on and from the date of the passing of this Act.
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