Revenue Precedent

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Revenue Precedents

Would interest payable by a qualified company within the meaning of section 446 TCA 1997 on borrowings from group companies in non-treaty countries be treated as a distribution under section 130(2)(d)(iv) TCA 1997? Interest would not be treated as a distribution under section 130(2)(d)(iv) TCA 1997 subject to the following conditions: a) the interest is charged at a commercial rate; b) the interest would otherwise be recognised (apart from the afore-mentioned section) as an expense to be set against income of the trade; c) the funds borrowed are used solely for qualifying activities certified by the Minister for Finance under section 446 TCA 1997; d) an application for this treatment must be made in letter form to the Revenue Commissioners, Direct Taxes: Incentives Branch, Dublin Castle, Dublin 2. 5049/97

The redemption of shares in stock exchange where stock broker retires would not be treated as a distribution under section 130 TCA 1997 but would be treated as a disposal for CGT purposes. IR892028