Taxes Consolidation Act 1997 section 700

Special computational provisions

Section 700 sets out special rules for the tax treatment of share and loan interest paid by industrial and provident societies and credit unions, including reporting obligations.

• Share or loan interest paid by a society must be paid without deduction of income tax, is taxable under Case III of Schedule D, and is not treated as a distribution — but income tax must be deducted where the recipient is non-resident.
• For the purposes of this section, "society" includes a credit union registered (or deemed to be registered) under the Credit Union Act 1997; for dividends paid by credit unions on or after 1 January 2001, Chapter 5 of Part 8 applies instead.
• In computing a society's corporation tax, charges on income paid by the society under section 243 may be offset against its total profits, with the word "yearly" in section 243(4)(a) being disregarded.
• Every society must file a return by 31 January each year detailing the name, address and amount of share or loan interest of €90 or more paid to each person in the preceding year of assessment; failure to file results in loss of deductions for that interest and amended assessments may be raised.