Specified financial transactions
Specified financial transactions are credit transactions, deposit transactions and investment transactions which achieve the same economic result in substance as comparable conventional products.
These can include financing arrangements that are compliant with the principles of Shari’a law (which forbids the making or receiving of interest payments). Such arrangements may or may not be treated in the same way as mainstream financial transactions which are similar in substance. A financing arrangement is not required to adhere to any faith based principles to be considered a specified financial transaction.
Specified financial transactions will have a similar objective to other financial transactions, but are often structured in an alternative way (regarding debt).
You inform Revenue of a ‘specified financial transaction’ by submitting a:
- SFT1 Form for financial undertakings according to Section 267N of the Taxes Consolidation Act 1997.
- SFT2 Form for a qualifying company according to Section 267N of the Taxes Consolidation Act 1997.
For further information on specified financial transactions, please see the Tax and Duty Manual Part 08A-01-01.