|
|
|
Attribution of relevant profits for additional credit
|
| |
|
|
| |
40. (1) Schedule 24 to the Principal Act is amended in paragraph 9I—
|
|
| |
(a) in subparagraph (1), in the definition of “tax”, by deleting “, for the purposes of the definition of ‘excluded dividend’ in this subparagraph,”,
|
|
| |
(b) in subparagraph (4)(b) by substituting “subject to corporation tax at the rate specified in section 21A(3)(a)” for “chargeable to corporation tax under Case III of Schedule D”, and
|
|
| |
(c) by inserting the following subparagraph after subparagraph (4):
|
|
| |
(4A) (a) Where the relevant profits in relation to the relevant dividend referred to in clause (a) or (b) of subparagraph (4) have not been subject to tax, which corresponds to corporation tax in the State, but are attributable to profits of a company which have been subject to such tax, then, for the purposes of subparagraph (4), the rate per cent of tax, which is referred to in clause (a) or (b) of that subparagraph as applicable to the relevant profits in relation to the relevant dividend, shall be deemed to be the rate per cent of tax, which corresponds to corporation tax in the State, applicable to those profits of that company which have been subject to such tax.
|
|
| |
(b) For the purposes of clause (a) and subparagraphs (3) and (4)—
|
|
| |
(i) each part, if any, of a relevant dividend mentioned in clause (a) or (b) of subparagraph (4), being—
|
|
| |
(I) an amount (referred to in this subclause as the ‘directly taxed amount’), which is so much of the relevant dividend as does not exceed the relevant profits in relation to the relevant dividend which have been subject to tax, which corresponds to corporation tax in the State, or
|
|
| |
(II) so much of the excess of the relevant profits in relation to the relevant dividend over the directly taxed amount as is attributable to profits of a company which have been subject to tax, which corresponds to corporation tax in the State,
|
|
| |
shall be treated as a separate relevant dividend, and
|
|
| |
(ii) the aggregate value of the parts of the relevant dividend so treated under subclause (i) shall not exceed the value of that relevant dividend.
|
|
| |
(c) For the purposes of this subparagraph—
|
|
| |
(i) profits of a company are attributable to the profits of another company if they have been received directly or indirectly by the payment of dividends or the making of distributions by one or more companies directly or indirectly from the profits of that other company, and
|
|
| |
(ii) relevant profits in relation to a relevant dividend shall not be attributable to the same profits of a company more than once.
|
|
| |
(d) For the purposes of clause (c)(ii), any profits of a company, other than relevant profits in relation to a relevant dividend, and any profits of any other company to which they are attributable shall be deemed to be the same profits.”.
|
|
| |
((2) This section shall have effect as respects dividends paid on or after the date of the passing of this Act.
|
