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Amendment of Part 3 (provisions relating to the Schedule C charge and government and other public securities) of Principal Act.
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35.— (1) The Principal Act is amended—
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(a) by substituting the following for section 42:
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“Exemption of interest on savings certificates.
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42.— (1) In this section—
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‘EEA Agreement’ means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by the Protocol signed at Brussels on 17 March 1993;
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‘EEA state’ means a state which is a contracting party to the EEA Agreement;
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‘relevant State’ means—
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(i) a Member State of the European Union, or
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(ii) not being such a Member State, an EEA state which is a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made.
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(2) The accumulated interest payable in respect of any savings certificate issued by the Minister for Finance, or savings certificates or other similar securities issued by the Government of a relevant State pursuant to rules and conditions which correspond to the rules and conditions contained in regulations issued by the Minister for Finance, under which the purchaser, by virtue of an immediate payment of a specified sum, becomes entitled after a specified period to receive a larger sum consisting of the specified sum originally paid and accumulated interest on that specified sum, shall not be liable to tax so long as the amount of such certificates held by the person who is for the time being the holder of the certificate does not exceed the amount which that person is for the time being authorised to hold under regulations made by the Minister for Finance.”,
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(b) in subsection (1) of section 43 by substituting “resident” for “ordinarily resident”,
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(c) in subsection (4) of section 45 by substituting “resident” for “ordinarily resident”,
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(d) in subsection (5) of section 48 by substituting “resident” for “ordinarily resident”, and
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(e) in section 49 by the substitution of the following for subsection (2):
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“(2) Any stock or other security to which this section applies may be issued with a condition that neither the capital of nor the interest on the stock or other security shall be liable to tax so long as it is shown in the manner directed by the Minister for Finance that the stock or other security is in the beneficial ownership of persons who are not resident in the State, and accordingly as respects every such stock or other security issued, exemption from tax shall be granted.”.
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(2) This section comes into force and takes effect as on and from 4 February 2010.
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