Finance Act, 1986

Stamp duty on certain statements of interest.

94.—(1) (a) In this section—

“corporation tax” means the tax charged by the Corporation Tax Acts;

“Corporation Tax Acts” has the meaning given to it by section 155 (1) of the Corporation Tax Act, 1976 ;

“relevant interest” means any interest or other distribution which—

(i) is received by a company (hereinafter in this section referred to as “the lender”) which is within the charge to corporation tax, and

(ii) is payable out of the assets of another company (hereinafter in this subsection referred to as “the borrower”) which is resident in the State for the purposes of corporation tax, in respect of a security of the borrower which is a security falling within subparagraph (ii), (iii) (I) or (v) of section 84 (2) (d) of the Corporation Tax Act, 1976 , and

(iii) is a distribution for the purposes of the Corporation Tax Acts;

“relevant period” means the period beginning on the 30th day of January, 1986, and ending on the 31st day of July, 1986, the period of six months ending on the 31st day of January, 1987, or any subsequent period of six months ending on the 31st day of January or the 31st day of July.

(b) For the purposes of this section, any amount which, in a relevant period, is debited to a borrower's account with a lender in respect of relevant interest shall be treated as an amount received by the lender in that relevant period.

(2) A lender shall, within 30 days from the end of each relevant period, deliver to the Revenue Commissioners a statement in writing showing the amount of the relevant interest for that lender in respect of that relevant period.

(3) There shall be charged on every statement delivered in pursuance of subsection (2) a stamp duty of an amount equal to 12 per cent. of the amount of the relevant interest shown therein:

Provided that, in a case where the amount of the relevant interest received by a lender in respect of a security referred to in subsection (1) is an amount which is less than what would have been received by that lender had the security yielded simple interest at the rate of 6 per cent. per annum throughout the period for which the relevant interest was payable, the stamp duty charged on the statement on the amount of the relevant interest for that security shall be an amount equal to 8 per cent. of the amount received.

(4) The duty charged by subsection (3) upon a statement delivered by a lender pursuant to subsection (2) shall be paid by the lender upon delivery of the statement.

(5) There shall be furnished to the Revenue Commissioners by a lender such particulars as the Revenue Commissioners may deem necessary in relation to any statement required by this section to be delivered by a lender.

(6) In the case of failure by a lender to deliver any statement required by subsection (2) within the time specified in that subsection or of failure by a lender to pay any duty chargeable on any such statement on the delivery thereof, the lender shall be liable to pay, by way of penalty, in addition to the duty, interest thereon at the rate of 2.5 per cent. for each month or part of a month from the expiration of the relevant period to which the statement relates until the date on which the duty is paid.

(7) The delivery of any statement required by subsection (2) may be enforced by the Revenue Commissioners under section 47 of the Succession Duty Act, 1853 , in all respects as if such statement were such account as is mentioned in that section and the failure to deliver such statement were such default as is mentioned in that section.

(8) The stamp duty charged by this section shall not be allowed as a deduction for the purposes of the computation of any tax or duty under the care and management of the Revenue Commissioners payable by the lender.

(9) The Imposition of Duties (No. 282) (Stamp Duty on Certain Statements of Interest) Order, 1986 (S.I. No. 27 of 1986), is hereby revoked.