Finance Act, 1950
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Provision as to dividends. |
13.—(1) This section applies to any dividend payable after the passing of this Act, being a dividend from which deduction of tax is authorised by Rule 20 of the General Rules. | |
(2) In this section— | ||
the expression “the company” means a body of persons paying a dividend to which this section applies; | ||
the expression “double taxation relief” means any credit for tax (other than British income tax) payable in any territory outside the State, which is allowable against Irish income tax by virtue of any international agreement having the force of law, including any such credit which has been taken into account in relation to any dividends receivable by the company; | ||
the expression “the reduced Irish rate” means the rate of Irish income tax payable directly or by deduction by the company after taking double taxation relief into account. | ||
(3) (i) Notwithstanding anything in the Income Tax Acts, no relief or repayment in respect of the tax deducted or authorised to be deducted from any dividend to which this section applies shall, in a case in which there is double taxation relief, be allowed at a rate exceeding the reduced Irish rate. | ||
(ii) Where the reduced Irish rate falls to be computed in relation to a dividend, the particulars to be given by the company in the statement required by section 13 of the Finance Act, 1925 (No. 28 of 1925), and section 5 of the Finance Act, 1940 (No. 14 of 1940), shall (in addition to the particulars required to be given apart from this section) include particulars of the reduced Irish rate. | ||
(4) Where a dividend has been paid before the passing of this Act, and any double taxation relief would have fallen to be taken into account in relation to that dividend if this section had applied thereto, that relief shall be taken into account as far as possible in determining the reduced Irish rate in relation to the first dividend payable by the company to which this section applies, and any part of that relief which cannot be so taken into account shall as far as possible be taken into account in relation to the next succeeding dividend, and so on. | ||
(5) Where the whole or any part of any annual payment is payable out of a dividend to which this section applies, and the rate of relief or repayment allowable in respect of the tax deducted or authorised to be deducted from the dividend is affected by double taxation relief, the annual payment, or that part thereof, as the case may be, shall be deemed to be paid out of profits or gains not brought into charge to tax and Rule 21 of the General Rules shall apply accordingly, but the tax recoverable under the said Rule from the person making the payment shall be reduced by an amount equal to tax on the payment or part of the payment at the reduced Irish rate applicable to the dividend. |