519C Interest, etc. under certified contractual savings schemes.

(1) In this section—

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“EEA Agreement” means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;

“EEA state” means a state which is a contracting party to the EEA Agreement;

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“qualifying savings institution” means any of the following persons—

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(a) a person who is a holder of a licence granted under section 9 of the Central Bank Act, 1971, or a person who holds a licence or other similar authorisation under the law of any other Member State of the European Communities which corresponds to a licence granted under that section,

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(a) a person who is a holder of a licence granted under section 9 or an authorisation granted under section 9A of the Central Bank Act 1971, or a person who holds a licence or other similar authorisation under the law of an EEA state, other than the State, which corresponds to a licence granted under the said section 9,

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(b) a building society within the meaning of section 256,

(c) a trustee savings bank within the meaning of the Trustee Savings Banks Act, 1989,

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(d) ACC Bank plc,

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(e) ICC Bank plc,

(f) ICC Investment Bank Limited,

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(g) the Post Office Savings Bank,

(h) a credit union within the meaning of the Credit Union Act, 1997, or

(i) such other person as the Minister for Finance may by order prescribe.

(2) Any terminal bonus or interest paid by a qualifying savings institution to an individual under a certified contractual savings scheme shall be exempt from income tax and shall not be reckoned in computing total income for the purposes of the Income Tax Acts.

(3) Any terminal bonus or interest paid by a qualifying savings institution under a certified contractual savings scheme shall not, where the qualifying savings institution is a relevant deposit taker within the meaning of section 256, be relevant interest for the purposes of that section and accordingly shall not be subject to deduction of appropriate tax under section 257.

(4) In this section “certified contractual savings scheme” means a scheme—

(a) which provides for periodical contributions to be made by individuals for a specified period to a qualifying savings institution where the deposit represented by such contributions would, but for subsection (3), constitute a relevant deposit within the meaning of section 256 if the qualifying savings institution were a relevant deposit taker within the meaning of that section,

(b) where the individuals referred to in paragraph (a)—

(i) are eligible to participate in, that is to say, to obtain and exercise rights under, an approved savings-related share option scheme, and

(ii) whose contributions under the scheme are to be used in accordance with paragraph 17 of Schedule 12A,

and

(c) which is certified by the Revenue Commissioners as qualifying for exemption under this section by reference to requirements specified by the Minister for Finance in accordance with Schedule 12B.

(5) Schedule 12B to this Act which contains provisions supplementing this section shall have effect.

(6) This section shall apply in relation to any terminal bonus or interest paid by a qualifying savings institution on or after the 6th day of April, 1999, under a certified contractual savings scheme.