Finance Act, 1994
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Distributions to non-residents. |
27.—As respects distributions made on or after 6 April, 1994, Part IX of the Corporation Tax Act, 1976 , is hereby amended— | |
(a) in section 83 by the substitution for subsection (4) (as substituted by section 38 of the Finance Act, 1992 ) of the following subsection: | ||
“(4) Where for any year of assessment the income of a person who for that year is neither resident nor ordinarily resident in the State includes an amount in respect of a distribution made by a company which is resident in the State— | ||
(a) the liability of the person to income tax in respect of the distribution shall be reduced by the amount by which that liability, before it is reduced by the tax credit (if any) in respect of the distribution, exceeds the amount, which may be nil, of that tax credit, and | ||
(b) the amount or value of the distribution shall be treated for the purposes of sections 433 (yearly interest, etc., payable wholly out of taxed profits) and 434 (interest, etc., not payable out of taxed profits) of the Income Tax Act, 1967 , as not brought into charge to income tax.”, | ||
and | ||
(b) in section 88— | ||
(i) by the deletion from subsection (1) of “and the person receiving the distribution is another such company or a person resident in the State, not being a company,”, | ||
and | ||
(ii) by the substitution for subsection (4) of the following subsection: | ||
“(4) A person, not being a company resident in the State, who is entitled to a tax credit in respect of a distribution may claim— | ||
(a) to have the credit set against the income tax chargeable on such person's income for the year of assessment in which the distribution is made, and | ||
(b) where the credit exceeds that income tax, and the person is— | ||
(i) resident in the State, or | ||
(ii) entitled under section 160 to a tax credit in respect of the distribution, | ||
to have the excess paid to that person.”. |