Finance Act, 1990
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Tax treatment of securities issued at a discount. |
138.—(1) In this section— | |
“owner”, in relation to securities, means, at any time, the person who would be entitled, if the securities were redeemed at that time by the issuer, to the proceeds of the redemption; | ||
“securities” means— | ||
(a) non-interest-bearing securities issued by the Minister for Finance at a discount, including Exchequer Bills and Exchequer Notes, and | ||
(b) Agricultural Commodities Intervention Bills issued by the Minister for Agriculture; | ||
“tax” means income tax or corporation tax, as appropriate. | ||
(2) Section 28 of the Finance Act, 1984 , is hereby amended, as respects issues of securities which are made after the passing of this Act, by the substitution of the following subsections for subsection (2)— | ||
“(2) This section applies to securities within the meaning of section 138 of the Finance Act, 1990. | ||
(3) Where the owner of a security (being the owner within the meaning of section 138 of the Finance Act, 1990)— | ||
(a) sells or otherwise disposes of the security, or | ||
(b) receives on redemption of the security an amount greater than the amount paid by him for that security either on its issue or otherwise, | ||
any profit, gain or excess arising to the owner from such sale, disposal or receipt shall be exempt from tax (within the meaning of the said section 138 ) where the said owner is not ordinarily resident in the State: | ||
Provided that this subsection shall not apply in respect of corporation tax chargeable on the income of an Irish branch or agency of a company not resident in the State.”. |