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Amendment of Part 8 (annual payments, charges and interest) of Principal Act.
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21.—Part 8 of the Principal Act is amended—
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(a) in section 256(1)—
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(i) in paragraph (ii) of the definition of “special term account”, by substituting “taker;” for “taker.”, and
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(ii) by inserting the following after the definition of “special term account”:
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“‘special term share account’ has the same meaning as in section 267A.”,
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(b) in section 261A—
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(i) by substituting the following for subsections (2) and (3):
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“(2) Interest paid in a year of assessment in respect of a relevant deposit held in a medium term account shall—
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(a) be relevant interest only to the extent that such interest exceeds €480, and
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(b) as respects the first €480 of such interest, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.
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(3) Interest paid in a year of assessment in respect of a relevant deposit held in a long term account shall—
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(a) be relevant interest only to the extent that such interest exceeds €635, and
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(b) as respects the first €635 of such interest, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.”,
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and
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(ii) by substituting the following for subsection (5):
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“(5) Where an election is made in accordance with subsection (4), interest paid in a year of assessment which commences on or after the date the election is made shall—
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(a) be relevant interest only to the extent that such interest exceeds €635, and
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(b) as respects the first €635 of such interest, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.”,
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(c) in section 264A—
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(i) in subsection (1), by substituting the following for paragraph (j):
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“(j) an individual shall not simultaneously hold whether solely or jointly—
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(I) a special term share account, or
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(II) subject to paragraph (k), another special term account;”,
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and
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(ii) in subsection (2)(a), by deleting the words “is payable”,
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(d) in section 267A—
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(i) in subsection (1), by inserting the following after the definition of “special share account”:
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“‘special term account’ has the same meaning as in section 256(1);”,
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and
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(ii) by inserting the following after subsection (1):
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“(2) For the purposes of this Chapter the amount of any dividend credited to a member's account shall be treated as if it were a dividend paid, and references in this Chapter to any dividend paid shall be construed accordingly.”,
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(e) in section 267C—
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(i) by substituting the following for subsections (1) and (2):
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“(1) The value of the dividend paid in a year of assessment on shares held in a medium term share account shall—
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(a) be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds €480, and
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(b) as respects the first €480 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.
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(2) The value of the dividend paid in a year of assessment on shares held in a long term share account shall—
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(a) be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds €635, and
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(b) as respects the first €635 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.”,
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and
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(ii) by substituting the following for subsection (4):
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“(4) Where an election is made in accordance with subsection (3), the value of the dividend paid on shares in a year of assessment which commences on or after the date the election is made shall—
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(a) be treated as an amount of relevant interest paid in that year of assessment only to the extent that such value exceeds €635, and
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(b) as respects the first €635 of such value, be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.”,
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and
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(f) in section 267D—
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(i) in subsection (1), by substituting the following for paragraph (j):
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“(j) a member shall not simultaneously hold whether solely or jointly—
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(I) a special term account, or
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(II) subject to paragraph (k), another special term share account;”,
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and
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(ii) in subsection (2)(a), by deleting the words “is payable”.
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