Taxes Consolidation Act 1997 section 43

Certain securities issued by Minister for Finance

Section 43 provides a tax exemption for the capital and interest on certain Government securities that are beneficially owned by persons not resident in the State, and withdraws that exemption where such securities are held by or for an Irish branch or agency of a foreign company carrying on a financial trade or business.

• The Minister for Finance may issue Government securities with a condition that both the capital and the interest are exempt from income tax and corporation tax, provided the securities are beneficially owned by a person or persons not resident in the State.
• The exemption does not apply to securities acquired after 29 January 1992 by a company where they are held by or for an Irish branch or agency carrying on a financial trade or business — if the securities are held by the foreign company separately from its Irish branch, the exemption continues to apply.
• Whether a trade or business is "financial" is determined by asking whether the income from the securities would, absent the exemption, be chargeable to corporation tax under Case I or Case IV of Schedule D (covering banking and general insurance) or under section 726 (covering life assurance).
• In so far as the Case IV charge is concerned, the withdrawal of the exemption applies only to interest and other profits or gains accruing on or after 21 April 1997.