Pat Carey (Dublin North West, Fianna Fail)

Section 25 amends section 198 of the Taxes Consolidation Act 1997 which exempts certain interest payments to non-residents from the charge to Irish income tax. The purpose of the amendment is to extend this exemption to payments of interest on wholesale debt instruments as well as to discounts received on financial instruments issued by an Irish company or investment undertaking. In both cases, to qualify for the exemption, the recipient of the interest or discount must be resident in another European Union member state or in a country with which Ireland has a double taxation agreement.