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Amendment of section 246 (interest payments by companies and to non-residents) of Principal Act.
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19.—(1) Section 246 of the Principal Act is amended—
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(a) in subsection (3), by inserting the following after paragraph (b):
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“(bb) interest paid in the State by a company to another company, being a company to which paragraph (a) of subsection (5) applies, for so long as that other company is a company to which that paragraph applies,”,
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and
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(b) by inserting the following after subsection (4):
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“(5) (a) This paragraph shall apply to a company—
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(i) which advances money in the ordinary course of a trade which includes the lending of money,
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(ii) in whose hands any interest payable in respect of money so advanced is taken into account in computing the trading income of the company, and
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(iii) which—
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(I) has notified in writing the appropriate inspector to whom the company makes the return referred to in section 951 that it meets the requirements of subparagraphs (i) and (ii), and
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(II) (A) has notified the first company referred to in subsection (3)(bb) in writing that it is a company which meets those requirements and that it has made the notification referred to in subparagraph (iii)(I), and
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(B) has provided the first company referred to in subsection (3)(bb) with its tax reference number (within the meaning of section 885).
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(b) A company which is no longer a company to which paragraph (a) applies shall, upon that paragraph ceasing to apply to it, immediately notify in writing the inspector referred to in subparagraph (iii)(I) of paragraph (a) and the company referred to in subparagraph (iii)(II) accordingly.”.
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(2) This section applies as respects interest paid on or after the date of the passing of the Finance Act, 2002.
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