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Definition of the substituted standard.
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39.—(1) The substituted standard applicable to a company in respect of any particular accounting period or part of an accounting period shall be:—
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(a) in the case of a company incorporated by or under the laws of the State, the standard payments of such company for dividends and interest (as defined in the next following sub-section of this section) in respect of the said accounting period or part of an accounting period, or
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(b) in the case of a foreign company, an amount which bears to the standard payments of the company for dividends and interest (as defined as aforesaid) in respect of the said accounting period or part of an accounting period the same proportion as the amount of the turnover of the trade or business carried on by the company in the State during such accounting period or part of an accounting period bears to the total turnover of all the trade or business carried on wheresoever by the company during such accounting period or part of an accounting period.
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(2) The standard payments of a company for dividends and interest in respect of any accounting period or part of an accounting period shall be taken for the purposes of this section to be the amount necessary to provide for the aggregate amount of the following payments in respect of that accounting period or part of an accounting period, that is to say:—
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(a) the dividends on the paid-up preference stock or shares of the company at the fixed rate at which such dividends are payable, and
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(b) dividends at the rate of six per cent. per annum on the paid-up ordinary stock or shares of the company, and
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(c) interest on the debentures or debenture stock of the company (other than debentures or debenture stock issued by way of security for a bank overdraft) at the fixed rate at which such interest is payable.
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