Taxes Consolidation Act 1997 section 809

Saver

Section 809 ensures that exemptions from tax on certain interest and dividends available to non-residents cannot be used to shelter income that is deemed under the transfer of assets abroad provisions to be the income of an Irish resident.

• Where income is deemed under the Income Tax Acts (particularly sections 806 and 807A) to be the income of an Irish resident, it cannot claim exemption from tax under the non-resident interest and dividend provisions.
• The specific exemptions disapplied include those for government securities (section 43), certain securities of ACC Bank plc (section 47), certain exempt securities (section 49), Irish local authority securities issued abroad (section 50), securities of foreign territories (section 35) and dividends of non-residents (section 63).
• The exemption is denied where the original recipient's entitlement to it rests on being non-resident, not ordinarily resident, or neither domiciled nor ordinarily resident in the State.
• The provision prevents a scheme whereby securities are transferred abroad to a non-resident, with the resulting income channelled back to the Irish resident in a form that would otherwise escape tax.