35 Securities of foreign territories

Summary

Dividends on securities of foreign territories payable in the State are exempt from tax where the person owning and entitled to such dividends is not resident in the State. For this purpose, where such securities are held under any trust, a person is deemed to be the owner of the securities where the person is the sole beneficiary in possession under the trust and can obtain possession of the securities absolutely free from any trust.

Details

Exemption

(1)(a) Exemption from tax is provided for the dividends on any securities of any foreign territory payable in the State provided it is proved to the satisfaction of the Revenue Commissioners that the person owning the securities and entitled to the dividends is not resident in the State. Subject to any exception in the Income Tax Acts (in this regard see subsection (2)), no allowance or repayment is to be made for tax on such dividends which are payable in the State.

(1)(b) In the case of any such securities held under a trust, where 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 power under the trust, request the trustees at any time to transfer the securities to that person absolutely free from any trust, then, that person is deemed for the purpose of this section to be the person owning the securities.

(2) On a claim being made to the Revenue Commissioners, the exemption provided by this section may be given by means of allowance or repayment.

Appeals

(3) & (4) There is a right of appeal to the Appeal Commissioners on any question as to a person’s residence status. Any appeal is to be heard and determined by the Appeal Commissioners in the same way as an appeal against an assessment to income tax is heard and determined. 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 also apply.

Relevant Date: Finance Act 2021