Revenue Tax Briefing Issue 43, 2001
In April 1999, Revenue issued a revised Information Notice on arrangements for the taxation of stocklending/sale and repurchase (repo) transactions. The Notice was published in Tax Briefing, Issue 36 (June 1999). The purpose of this note is twofold:
Paragraphs (iv) and (v) under the heading “Revenue Approach”
Where all other conditions of the Information Notice are met, an IFSC company which borrows foreign securities and makes a manufactured payment to the securities lender is not precluded from availing of the terms of paragraphs (iv) and (v) of the Notice.
Amendment to Paragraph (iv) under the heading “Revenue Approach”
Paragraph (iv) of the Notice has been amended by the insertion of the second sentence set out hereunder.
(iv) Manufactured payments will normally be deductible by borrowers against the real dividends or interest in computing the borrowers' liability to Irish tax. In the computation, the amount of the manufactured payment must be deducted directly from the related real dividends or interest and should not be deducted from any other income. No deduction will, however, be granted for the manufactured payment where the real dividend or interest:
Any queries in relation to any aspect of this note should be referred to
Direct Taxes International and
Administration Division,
Financial Services Unit,
Dublin Castle,
Dublin 2.
Telephone: |
01-7024105 |
Fax: |
01-6793314 |