Finance Act, 1932

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Relief to investors in Saorstát Eireann securities.

7.—(1) Where an individual who is resident in Saorstát Eireann and is not resident elsewhere claims and proves to the satisfaction of the Special Commissioners that he is entitled to the beneficial ownership of any stock, shares, or security to which this section applies, the following provisions shall have effect, that is to say:—

(a) such individual shall be entitled to repayment of twenty per cent. of the income tax applicable to any dividend or interest received by him in respect of such stock, shares, or security, save in so far as relief or repayment in respect of such tax has been or is granted under any other provision of the Income Tax Acts;

(b) in estimating the total income from all sources of such individual for the purposes of income tax and sur-tax the amount of any dividend or interest in respect of such stock, shares, or security shall be deemed to be diminished by twenty per cent.

(2) This section shall apply to all stocks, shares, and securities issued for public subscription after the passing of this Act in respect of which the Minister for Finance certifies that he is satisfied, after consultation with the Minister for Industry and Commerce, that all the following conditions are complied with in relation to such stock, share, or security, that is to say:—

(a) such stock, share, or security is or was issued by a company which complies with the following provisions that is to say, such company—

(i) is incorporated by or under the laws of Saorstát Eireann, and

(ii) is a company limited by shares within the meaning of the Companies (Consolidation) Act, 1908 , and

(iii) is managed and controlled in Saorstát Eireann, and

(iv) carries on or (in the case of a company which has not commenced to carry on business) intends to carry on its business wholly or mainly in Saorstát Eireann; and

(b) the capital raised by the issue of such stock, share, or security is or is intended to be or has been devoted to the establishment or extension in Saorstát Eireann of one or more industries as defined by this section; and

(c) no part of the said capital so raised is intended to be or is being or has been used for the purpose of acquiring (directly or indirectly) an existing business or any share or interest in an existing business or of purchasing investments, or of paying off existing loans or debentures; and

(d) such issue of stock, shares, or security is so described and designated that it is readily distinguishable from all other (if any) issues of such company.

(3) Every warrant, cheque, or order drawn or made for the payment of any dividend or interest in respect of any stock, share, or security to which this section applies shall indicate clearly either (as the case may require)—

(a) that the whole of the sum for which such warrant, cheque, or order is drawn or made is a payment of or on account of dividend or interest in respect of such stock, share, or security; or

(b) that a part (the amount of which is separately stated) of such sum is a payment of or on account of such dividend or interest.

(4) Any stock, share, or security to which this section applies shall cease to be a stock, share, or security (as the case may be) to which this section applies if and when the Minister for Finance certifies in relation to such stock, share, or security that he is satisfied, after consultation with the Minister for Industry and Commerce, either—

(a) that the company by which such stock, share, or security was issued has ceased to comply with the provisions set forth in paragraph (a) of sub-section (2) of this section; or

(b) that the capital raised by the issue of such stock, share, or security has been or is being devoted wholly or partly to purposes other than the establishment or extension in Saorstát Eireann of one or more industries as defined by this section; or

(c) that such capital is being used wholly or partly in contravention of paragraph (c) of sub-section (2) of this section; or

(d) that such issue of stock, shares, or security has ceased to be described and designated in accordance with paragraph (d) of sub-section (2) of this section; or

(e) that sub-section (3) of this section is not being complied with in relation to such stock, share, or security.

(5) In this section the word “industry” means any trade or business whatsoever save and except the purchase and sale of imported coal, the manufacture or distribution of gas for lighting, heating, or power, the carrying on, organisation, or conduct of road transport, the provision of amusement or entertainment of any kind, the holding (otherwise than by way of investment of reserve or subsidiary funds) of or dealing in stocks, shares, or securities, whether of all kinds or of any particular class or classes or of one or more particular companies.