Finance Act, 1971
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Charge of tax on sums applied outside the State in repaying certain loans. |
4.— (1) For the purposes of section 76 (3) of the Income Tax Act, 1967 , any income arising from securities and possessions in any place outside the State which is applied outside the State by a person ordinarily resident in the State in or towards satisfaction of— | |
(a) any debt for money lent to him in the State or for interest on money so lent, or | ||
(b) any debt for money lent to him outside the State and received in or brought to the State, or | ||
(c) any debt incurred for satisfying in whole or in part a debt falling within paragraph (a) or (b), | ||
shall be treated as received by him in the State and as so received from remittances payable in the State. | ||
(2) Where a person ordinarily resident in the State receives in or brings to the State money lent to him outside the State, but the debt for that money is wholly or partly satisfied before he does so, subsection (1) shall apply as if the money had been received in or brought to the State before the debt was so satisfied, except that any sums treated by virtue of that subsection as received in the State shall be treated as so received at the time when the money so lent is actually received in or brought to the State. | ||
(3) Where a person is indebted for money lent to him, income applied by him in such a way that the money or property representing the income is held by the lender on behalf of or to the account of the said person in such circumstances as to be available to the lender for the purpose of satisfying or reducing the debt by set-off or otherwise shall be treated as applied by the said person in or towards its satisfaction if, under any arrangement between the said person and the lender, the amount for the time being of the said person's indebtedness to the lender, or the time at which it is to be repaid in whole or in part, depends in any respect directly or indirectly on the amount or value held by the lender as aforesaid. | ||
(4) For the purposes of this section— | ||
(a) a debt for money lent shall, to the extent to which that money is applied in or towards satisfying another debt, be deemed to be a debt incurred for satisfying that other debt, and a debt incurred for satisfying in whole or in part a debt falling within paragraph (c) of subsection (1) shall itself be treated as falling within that paragraph, and | ||
(b) “lender” includes, in relation to any money lent, any person for the time being entitled to repayment. | ||
(5) This section shall not have effect in relation to income applied in or towards satisfaction of a debt for money lent before the 28th day of April, 1971, or of a debt incurred for satisfying in whole or in part any such debt, unless it is so applied after the end of the year 1971-72. |