Revenue Note for Guidance

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Revenue Note for Guidance

809 Saver

This section secures that the various provisions of the Income Tax Acts as specified in the section (which exempt from tax certain interest and dividends arising to nonresidents) do not operate to exempt income deemed under section 806 or 807A to be income of an individual resident or ordinarily resident in the State.

The intention is to ensure that these exemptions in favour of non-residents will not, in a case where securities are transferred abroad to a non-resident and the income arising from them is channelled back to the Irish resident in a purported non-taxable form, operate to defeat the purpose of the anti-avoidance provisions, which is to tax this income in the hands of the Irish resident. Since the scheme of the provisions is to deem the income arising to the non-resident (which the Irish resident has the power to enjoy) to be income of the Irish resident, there might, but for this provision, be a possible argument that the income, deemed to be the income of the Irish resident, should be regarded as having the exemption from tax which it had in the hands of the non-resident transferee.

Relevant Date: Finance Act 2021