Finance Act, 1995
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Amendment of section 23 (double taxation relief: supplementary) of Corporation Tax Act, 1976. |
60.— Section 23 of the Corporation Tax Act, 1976 , is hereby amended, as respects accounting periods ending on or after the 1st day of January, 1995— | |
(a) in subsection (2) by the substitution for “the corporation tax attributable to any income or gain (‘the relevant income or gain’) shall be determined in accordance with subsections (3) and (4).” of the following: | ||
“the corporation tax attributable to any income or gain (hereafter in this subsection referred to as ‘the said income’ or ‘the said gain’, as the case may be) of a company shall, subject to subsections (3) and (4), be the corporation tax attributable to so much (hereafter in this section referred to as ‘the relevant income’ or ‘the relevant gain’, as the case may be) of the income or chargeable gains of the company computed in accordance with the Tax Acts and the Capital Gains Tax Acts, as is attributable to the said income or the said gain, as the case may be: | ||
Provided that, for the purposes of this subsection, the relevant income of a company attributable to an amount receivable from the sale of goods, within the meaning of section 39C (inserted by the Finance Act, 1994 ) of the Finance Act, 1980 , shall be the sum which would, for the purposes of that section, be taken to be the amount of the income of the company referable to the amount so receivable.”, | ||
(b) in subsection (3) by the addition of the following proviso: | ||
“Provided that, where the corporation tax payable by the company for the relevant accounting period on the relevant income or gain is reduced by virtue of— | ||
(a) section 41 (as amended by the Finance Act, 1994 ) of the Finance Act, 1980 , by any fraction, the rate of corporation tax payable by the company on its income and chargeable gains for the relevant accounting period shall be treated as reduced by that fraction, | ||
(b) section 36 (2) (as amended by the Finance Act, 1993 ) of the Corporation Tax Act, 1976 , or section 17 (2) of the Finance Act, 1993 , the rate of corporation tax payable by the company on its income and chargeable gains for the relevant accounting period shall be treated as the standard rate of income tax by reference to which the corporation tax so payable is reduced, and | ||
(c) section 36A (6) (inserted by the Finance Act, 1993 ) of the Corporation Tax Act, 1976 , the rate of corporation tax payable by the company on its income and chargeable gains for the relevant accounting period shall be treated as 10 per cent., | ||
for the purposes of computing the corporation tax attributable to that relevant income or gain, as the case may be.”, | ||
and | ||
(c) in subsection (4) by the substitution for paragraphs (a) and (b) of the following paragraphs: | ||
“(a) the company shall, for the purposes of this section and sections 39C and 39D of the Finance Act, 1980 , allocate every such deduction in such amounts and to such of its profits for that period as it thinks fit, and | ||
(b) (i) the amount of the relevant income or gain shall be treated for the purposes of subsection (3), | ||
(ii) the amount of any income of a company which is treated for the purposes of that section as referable to an amount receivable from the sale of goods, within the meaning of that section, shall be treated for the purposes of the said section 39C, and | ||
(iii) the amount of the income of a company which is treated for the purposes of that section as attributable to relevant payments, within the meaning of that section, shall be treated for the purposes of the said section 39D, | ||
as reduced or, as the case may be, extinguished by so much (if any) of the deduction as is allocated to it.”. |