Taxes Consolidation Act 1997 section 62

Dividends paid outside the State and proceeds of sale of dividend coupons

Section 62 extends the charge to tax under Schedule D to foreign dividends handled through bankers or coupon dealers in the State, commonly known as "encashment tax".

• Where an Irish banker or other person obtains payment of foreign dividends on behalf of another person using coupons, the dividends themselves are chargeable to tax under Schedule D.
• Where an Irish banker sells or realises coupons for foreign dividends and pays or credits the proceeds to any person, the proceeds of that realisation are chargeable to tax under Schedule D.
• Where a coupon dealer in the State purchases coupons for foreign dividends from someone other than a banker or another coupon dealer, the purchase price paid is chargeable to tax under Schedule D.
• The section does not apply to a banker merely because the banker clears a cheque or arranges for a cheque to be cleared.