Ardagh Glass Finance plc - Irish Stock Exchange

Fifthly, Irish withholding tax on interest in respect of the Senior Notes does not apply where
interest is paid to a company:
(i) which advances money in the ordinary course of a trade which includes the lending of money;
(ii) in whose hands any interest payable in respect of monies so advanced is taken into account in
computing the trading income of such company; and
(iii) which has made the appropriate notifications under Section 246(5)(a) TCA 1997 to the Irish
tax authorities and the Issuer.
No Irish withholding tax is payable in respect of a repayment of any principal amount of the
Senior Notes.
Charge to Irish Tax
Persons tax resident in Ireland are generally liable to Irish income or corporation tax on their
worldwide income, including any income from the Senior Notes. The standard rate of tax applying to
the trading profits of companies is 12.5%. The rate of corporation tax applying to non-trading income
is 25%.
Persons who are not tax resident in Ireland are generally liable to Irish tax only in respect of Irish
source income, and in respect of income of a trade carried on in Ireland through a branch or agency.
Accordingly, non-Irish tax resident persons whose connection with Ireland is limited to holding the
Senior Notes, will be liable to Irish income tax on income (including interest and discounts realized)
from the Senior Notes (as it is Irish source) unless such income is exempt from Irish tax under the
terms of a double taxation agreement or under a specific provision of Irish tax law.
There is no liability to Irish income tax in respect of certain interest payments made to a person
tax resident in another EU Member State or in a country with which Ireland has a double tax treaty
(such as the United States), provided the interest is not received in the course of a trade carried on by
that person through a branch or agency in Ireland. The interest payments to which this exemption
applies include interest paid on quoted Eurobonds (such as the Senior Notes). See ‘‘—Withholding Tax
on Interest’’ above.
Where interest is paid to or income gains or discounts realized by a person tax resident outside the
EU and outside a country with which Ireland has a double taxation agreement, under long standing
practice no action will be taken by the Irish tax authorities to pursue any liability to such Irish tax in
respect of persons who are regarded as not being tax resident in Ireland, provided the interest is not
received in the course of a trade carried on by that person through a branch or agency in Ireland.
There is a statutory obligation to account for Irish tax, where it applies, on a self-assessment basis
and there is no requirement for the Irish tax authorities to issue or raise an assessment.
Payments under Guarantee Arrangement
Any payments made by the Parent Guarantor under the Parent Guarantor’s Guarantee can be
made without deduction of Irish withholding tax.
Such payments should not be subject to Irish tax in the hands of a recipient who is not tax resident
in Ireland and where the amount received is not connected with a trade carried on in Ireland by the
recipient through a branch or agency. The same analysis applies to such payments as would apply to
the taxation of interest as set out in the ‘‘—Charge to Irish Tax’’ section above.
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