Section 13 Rule 5: credit for tax charged directly on dividend

(1)

This section applies for the purposes of section 12(1).

(2)

Credit under section 9 for overseas tax on a dividend paid by a company (“P”) resident in the territory is allowed if—

(a)

the overseas tax is charged directly on the dividend (whether by charge to tax, deduction of tax at source or otherwise), and

(b)

neither P nor the recipient of the dividend would have borne any of that tax if the dividend had not been paid.

Notes on Part 2

C1: Pt. 2 modified by 1988 c. 1, Sch. 19ABA paras. 26-28 (as inserted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 34(3) (with Sch. 9 paras. 1-9, 22))
C2: Pt. 2 applied by 2010 c. 4, s. 269DL(6) (as inserted (with effect in accordance with Sch. 3 Pt. 3 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 1)