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Relief for foreign income tax in certain cases.
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365.—(1) Where an individual has paid under this Act by deduction or otherwise, or is liable under this Act to pay, income tax, or income tax and sur-tax, for any year of assessment in respect of any part of his income arising in a country to which this section applies and shows to the satisfaction of the Revenue Commissioners—
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(a) that he has paid external income tax in the said country in respect of the said part of his income, and
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(b) that he was, prior to the said year of assessment, resident in the said country to which this section applies for a continuous period of not less than ten years or for a number of discontinuous periods amounting in the aggregate to not less than ten years or, where the said part of his income arises in any one (hereinafter referred to as the particular country) of the countries coming under the description lastly set forth in subsection (3), that he was, prior to the said year of assessment, resident in any two or more, one of which is the particular country, of the countries coming under the said description for periods amounting in the aggregate to not less than ten years, and
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(c) that for the said year of assessment he was or is domiciled, resident, and ordinarily resident in the State, and
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(d) that, in respect of the said year of assessment, he is not entitled to claim relief from double taxation under Article 2 of the Agreement made 25th April, 1928, set forth in Schedule 6, Part I,
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the Revenue Commissioners may grant to such individual in respect of the said year of assessment such relief as is in their opinion just, but not exceeding whichever of the following amounts is the lesser, that is to say, one-half of the amount of the individual's Irish income tax for the said year of assessment or the amount of external income tax paid or payable by him in the said country in respect of the said part of his income after deduction of any relief to which he may be entitled in that country.
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(2) In subsection (1)—
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“the amount of the individual's Irish income tax” means the amount of tax appropriate to the income of the individual referred to arising in a country to which this section applies, such tax being computed at a rate determined by dividing, by the amount of the total income from all sources of the said individual for the relevant year of assessment, the amount of income tax or income tax and sur-tax payable under this Act by the said individual for the said year of assessment in respect of his total income before the granting of any relief under this section;
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“external income tax” means a tax which is chargeable and payable under the law of a country to which this section applies and appears to the Revenue Commissioners to correspond to income tax or sur-tax chargeable under this Act.
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(3) This section applies to the following countries, that is to say, the United States of America, Canada, Australia, New Zealand, the Republic of South Africa and also to any other country to which the repealed enactments corresponding to this section would apply but for their repeal.
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(4) Nothing contained in the foregoing provisions of this section shall authorise the granting of relief under this section to any individual in respect of any year of assessment to such an extent as would reduce the aggregate of the amount of income tax, sur-tax (if any), and external income tax (as defined in subsection (2)) payable by such individual in respect of any part of his income arising in a country to which this section applies (such aggregate being computed after deduction of any relief to which he may be entitled in the said country) below the amount of income tax and sur-tax (if any) which would be payable by such individual in respect of the said part of his income if that part of his income had arisen in the State.
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