Section 37 Securities of certain State-owned companies

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(1) In this section, "securities" means any bonds, certificates of charge, debentures, debenture stock, notes, stock or other forms of security.

(2) The securities specified in the Table to this section shall be deemed to be securities issued under the authority of the Minister for Finance under section 36, and that section shall apply accordingly.

Is tax deductible from interest paid on semi-State securities?

(1)-(2) You are entitled to be paid interest on securities issued by the companies listed below gross, i.e., without deduction of tax.

(3) Notwithstanding anything in the Tax Acts, in computing for the purposes of assessment under Schedule D the amount of the profits or gains of a company (being a company referred to in the Table to this section) for any accounting period, the amount of the interest on any securities which, by direction of the Minister for Finance given under section 36, as applied by subsection (2), is paid by the company without deduction of tax for such period shall be allowed as a deduction.

TABLE

Securities issued by ACC Bank plc.

Securities issued on or after the 13th day of July, 1954, by the Electricity Supply Board.

Securities issued on or after the 13th day of July, 1954, by Córas Iompair Éireann.

Securities issued on or after the 18th day of July, 1957, by Bord na Móna.

...¹

Securities issued on or after the 2nd day of July, 1964, by [Dublin Airport Authority]².

...³

…⁴

Securities issued on or after the 24th day of May, 1989, by Radio Telefís Éireann.

…⁵

Securities issued on or after the 28th day of May, 1992, by Bord Gáis Éireann.

Amendments

1 Deleted by Finance Act 2008 section 141 and Schedule 8 para 1(a)(i) on and from 31 January 2008.

2 Substituted by Finance Act 2008 section 141 and Schedule 8 para 1(a)(ii) on and from 31 January 2008.

3 Deleted by Finance Act 2008 section 141 and Schedule 8 para 1(a)(iii) on and from 31 January 2008.

4 Deleted by Finance Act 2001 section 241(1)(a) as respects any securities issued by Bord Telecom Éireann or Irish Telecommunications Investments plc on or after 15 February 2001.

5 Repealed by ICC Bank Act 2001 section 7 and Schedule as respects securities issued after the commencement of the repeal.

Can a semi-State company take a deduction for interest paid on securities it issued?

(3) If you are the company issuing the securities, you may deduct the interest paid in computing your corporation tax....

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