Taxes Consolidation Act 1997 section 37

Securities of certain State-owned companies

Section 37 provides that interest on securities issued by certain semi-State companies may be paid without deduction of tax at source, and that the issuing company may deduct that interest when computing its taxable profits.

• Securities issued by specified semi-State bodies (such as the ESB, CIÉ, Bord na Móna, Dublin Airport Authority, RTÉ, Bord Gáis Éireann, its gas network subsidiary, and Irish Water) are treated as if issued under the authority of the Minister for Finance.
• Interest on these securities may be paid gross — that is, without deduction of income tax at source — where the Minister for Finance so directs.
• The interest received is, however, chargeable to tax under Case III of Schedule D in the hands of the recipient, although this charge is removed in certain cases under sections 47 and 49.
• Subject to the provisions of Part 35D (which deals with certain anti-avoidance measures), the company paying the interest may claim a deduction for it when computing its profits assessable under Schedule D.