Chapter VI

Taxation of Trustee Savings Banks

59. —(1) Where any assets or liabilities of a trustee savings bank are transferred or deemed to be transferred to another trustee savings bank in accordance with the provisions of Part VI (which relates to amalgamation of trustee savings banks) of the Trustee Savings Banks Act, 1989 , those banks shall be treated for the purposes of the Tax Acts, and the Capital Gains Tax Acts, as if they were the same person.

(2) In this section, section 60 and the Fourth Schedule , “trustee savings bank” has the same meaning as it has in the Trustee Savings Banks Act, 1989 .

60. —The provisions of the Fourth Schedule shall apply to the reorganisation—

(a) of one or more trustee savings banks into a company, or

(b) of a company referred to in subparagraph (i) of subsection (3) (c) of section 57 of the Trustee Savings Banks Act, 1989 , into a company referred to in subparagraph (ii) of that subsection,

in accordance with the provisions of the said section 57.

61. — Section 337 of the Income Tax Act, 1967 , is hereby amended—

(a) by the substitution of the following subsection for subsection (1):

“(1) Any savings bank licensed under section 10 of the Trustee Savings Banks Act, 1989 , and any company to which section 57 (3) (c) (i) of that Act relates, shall be entitled to exemption from tax—

(a) in respect of its interest and dividends arising from—

(i) investments of moneys to the credit of the special account opened in pursuance of section 31 (3) of the Finance Act, 1940 , and

(ii) investments of moneys in securities of the Government as determined by the Central Bank of Ireland in accordance with the provisions of section 32 of the Trustee Savings Banks Act, 1989 ,

and

(b) in respect of profits or gains arising on the disposal of the said securities of the Government.”,

(b) in subsection (2)—

(i) by the substitution for that subsection (other than the proviso) of the following:

“(2) Any savings bank, whether licensed under the Trustee Savings Banks Act, 1989 , or not, shall be entitled to exemption from tax under Schedules C, D and F in respect of income of its funds, so far as such income is applied in the payment or credit of interest to any depositor:”,

and

(ii) by the substitution, in paragraph (a) of the proviso, of “Cases III or IV” for “Case III”,

and

(c) by the addition of the following subsection after subsection (2):

“(3) In this section ‘tax’ means income tax or corporation tax as the context requires.”.