Advances by a bank

The exemption at ITA07/S875 applies to interest paid by a bank. There is a further exemption at ITA07/S879 that applies in certain circumstances where interest is paid to a bank.

The obligation under ITA09/S874 to deduct tax is switched off if:

it is payable on an advance from a bank, and

at the time when the interest is payable, the person entitled to the interest is within the charge to corporation tax as respects the interest.

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