Taxes Consolidation Act 1997 section 227

Certain income arising to specified non-commercial State-sponsored bodies

Section 227 exempts non-commercial state-sponsored bodies listed in Schedule 4 from income tax and corporation tax on their non-trading income, while preserving their liability to deposit interest retention tax (DIRT).

• Non-commercial state-sponsored bodies (NCSBs) listed in Schedule 4 are exempt from tax on income that would otherwise fall under Case III, IV or V of Schedule D — this covers investment income, rental income and similar non-trading income, but not trading or professional income (Case I or II).
• The Minister for Finance may add bodies to or remove bodies from Schedule 4 by order, but a draft of the order must first be laid before Dáil Éireann and approved by resolution before it can take effect.
• NCSBs without charitable status cannot hold a DIRT-free deposit account; any DIRT deducted from their deposit interest is a final liability that is not refundable and cannot be credited against other tax liabilities of the body.
• Any income tax or corporation tax already paid by an NCSB before the exemption applied is not refundable; however, where an NCSB is chargeable to tax and pays preliminary tax in excess of its actual liability, the excess may be repaid in the usual way.