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6 1967

INCOME TAX ACT, 1967

PART XXXI

Foreign Dividends, etc.

Definitions.

459. —(1) In this Part, “dividends to which this Part applies” means any interest, dividends, or other annual payments payable out of or in respect of the stocks, funds, shares, or securities of any body of persons not resident in the State and references to dividends shall be construed accordingly:

Provided that this subsection shall not extend to any payment to which section 433 or 434 applies.

(2) In this Part “banker” includes a person acting as a banker, and references to coupons in relation to any dividends include warrants for or bills of exchange purporting to be drawn or made in payment of those dividends.

Dividends entrusted for payment in State.

460. —Where dividends to which this Part applies are entrusted to any person in the State for payment to any persons in the State—

(a) the dividends shall be assessed and charged to tax under Schedule D by the Special Commissioners; and

(b) the provisions of Parts IV, V and VI of Schedule 1 shall extend to the tax to be assessed and charged under this section.

Dividends paid outside State and proceeds of sale of dividend coupons.

461. —Where—

(a) a banker or any other person in the State, by means of coupons received from another person or otherwise on his behalf, obtains payment of any dividends to which this Part applies elsewhere than in the State; or

(b) a banker in the State sells or otherwise realises coupons for any dividends to which this Part applies and pays over the proceeds of such realisation to or carries such proceeds to the account of any person; or

(c) a dealer in coupons in the State purchases coupons for any dividends to which this Part applies otherwise than from a banker or another dealer in coupons,

the tax under Schedule D shall extend, in the case mentioned in paragraph (a), to the dividends, in the case mentioned in paragraph (b), to the proceeds of the realisation and, in the case mentioned in paragraph (c), to the price paid on such purchase and Parts IV, V and VI of Schedule 1 shall have effect in relation to the assessment, charge and payment of the tax.

Exemption of dividends of non-residents.

462. —(1) No tax shall be chargeable in respect of dividends to which this Part applies which are payable in the State where it is proved to the satisfaction of the Revenue Commissioners that the person owning the stocks, funds, shares or securities and entitled to the income arising therefrom, is not resident in the State but, save as provided by this Act, no allowance shall be given or repayment be made in respect of the tax on dividends to which this Part applies which are payable in the State:

Provided that where the dividends are from stocks, funds, shares or securities which are held under any trust, and the person who is the beneficiary in possession under the trust is the sole beneficiary in possession and can, by means either of the revocation of the trust or of the exercise of any powers under the trust, call upon the trustees at any time to transfer the stocks, funds, shares or securities to him absolutely free from any trust, that person shall, for the purposes of this section, be deemed to be the person owning the stocks, funds, shares or securities.

(2) Relief under this section may be given by the Revenue Commissioners either by way of allowance or repayment, on a claim being made to them for that purpose.

(3) Any person who is aggrieved by the decision of the Revenue Commissioners on any question as to residence arising under this section may, by notice in writing to that effect given to the Revenue Commissioners within two months from the date on which notice of the decision is given to him, make an application to have his claim for relief heard and determined by the Special Commissioners.

(4) Where an application is made under subsection (3), the Special Commissioners shall hear and determine the claim in like manner as an appeal made to them against an assessment and all the provisions of this Act relating to such an appeal (including the provisions relating to the rehearing of an appeal and to the statement of a case for the opinion of the High Court on a point of law) shall apply accordingly with any necessary modifications.