PART IV

Profits from Export of Certain Goods

53. —In this Part “relevant accounting period” means an accounting period or part of an accounting period of a company within the period of fifteen years from the later of the two following dates, that is to say—

(a) the 1st day of October, 1956, or

(b) the first day of the basis period for the year of assessment which was the company's first year of claim for the purposes of relief under Chapter IV of Part XXV of the Income Tax Act, 1967 (Profits from Export of Certain Goods), or, if there was no such first year of claim, the 6th day of April, 1975.

54. —(1) In this Part “goods” means goods manufactured within the State by the person who exports them or some of them and who in relation to the relevant accounting period is the company claiming relief under this Part:

Provided that where there are two companies one of which manufactures goods and the other of which exports them in the course of its trade and where one of the companies holds more than 90 per cent. of the ordinary shares in the other company or where persons who have a controlling interest in one company hold, either directly or indirectly, more than 90 per cent. of the ordinary shares in the other company, the goods manufactured by one of the companies shall, when exported in the course of its trade by the other company, be deemed to be manufactured by that other company.

(2) The definition of “goods” contained in subsection (1) shall include—

(a) fish produced within the State on a fish farm; and

(b) cultivated mushrooms, cultivated within the State,

and, in a case in which books or greeting cards are printed within the State otherwise than by their publisher and they or some of them are exported by their publisher (not being a case to which the proviso to subsection (1) applies), the books or greeting cards, as the case may be, shall be regarded, for the purposes of subsection (1), as having been manufactured within the State by their publisher.

(3) (a) The definition of “goods” contained in subsection (1) shall include goods manufactured within the State which do not come within that definition and which are exported by the person who in relation to the relevant accounting period is the company claiming relief under this Part where the selling by such person of the goods so exported is selling by wholesale.

(b) “Selling by wholesale” in paragraph (a) means selling goods of any class to a person who carries on a business of selling goods of that class or who uses goods of that class for the purposes of a trade or undertaking carried on by him.

55. —(1) In the case of a company carrying on the trade of building or repairing ships, the following provisions shall apply for the purposes of relief under this Part—

(a) repairs carried out within the State to a ship shall be regarded as the manufacture within the State of goods and, to the extent to which any such repairs have been carried out within the State to a ship which is wholly owned by persons who are not ordinarily resident in the State, the ship shall be regarded as goods which are manufactured within the State and exported by the person who manufactures them and any amount receivable in payment for repairs carried out within the State to a ship shall be regarded as an amount receivable from the sale of goods;

(b) where, as respects any relevant accounting period, the company, by notice in writing given to the inspector within twelve months after the end of that period, so elects, this Part shall apply in the case of that period—

(i) as if all ships built by the company within the State had been exported by the company,

(ii) as if all ships to which repairs were carried out by the company within the State were, to the extent of such repairs, goods exported by the company, and

(iii) as if amounts receivable by the company in payment for the building within the State or for the repair within the State of ships were amounts receivable from the sale of goods exported by the company out of the State.

(2) In subsection (1) (a) (b) any reference to repair or building includes a reference to repair or building effected at any time.

56. —(1) In this section—

“the Board” means An Bord Bainne Co-operative Limited;

“the Commission” means the Pigs and Bacon Commission;

“milk product” means butter, whey-butter, cream, cheese, condensed milk, dried or powdered milk, dried or powdered skim-milk, dried or powdered whey, chocolate crumb, casein, butter-oil, lactose, and any other product which is made wholly or mainly from milk or from a by-product of milk and which is approved for the purposes of this section by the Minister for Finance after consultation with the Minister for Agriculture and Fisheries;

“pigmeat product” means bacon and cuts thereof including ham, pork carcases and pork sides and cuts thereof, unrendered pig fat and canned pigmeat products.

(2) Where—

(a) a company produces a pigmeat product and sells it to the Commission, and

(b) that product is exported out of the State by the Commission,

this Part shall apply as if the said product had been exported out of the State by the company, and any amount receivable by the company from the sale of the said product to the Commission shall be deemed for the purposes of this Part to be an amount receivable from the sale of goods so exported.

(3) Where—

(a) a company manufactures a milk product and sells it to the Board, and

(b) that product is exported out of the State by the Board,

this Part shall apply as if the said product had been exported out of the State by the company, and any amount receivable by the company from the sale of the said product to the Board shall be deemed for the purposes of this Part to be an amount receivable from the sale of goods so exported.

57. —The standard period in relation to a company's trade shall, for the purposes of this Part, be the period of one year ending on the 30th day of September, 1956, or, if the company so elects, the period of one year ending on the 30th day of September, 1955, and that standard period shall be applicable in relation to the trade whether or not, during the whole or part of that standard period, the trade was carried on by a person other than the company by which it is carried on in the relevant accounting period or separate parts of the trade were carried on by different persons, but that standard period shall not be applicable where the trade was not in existence before the end of that standard period.

58. —(1) Where a company claims and proves as respects a relevant accounting period—

(a) that, during the standard period in relation to the trade, goods were, in the course of the trade, exported out of the State,

(b) that, during the relevant accounting period, goods were, in the course of the trade, exported out of the State, and

(c) that the total amount receivable from the sale of the last mentioned goods was in excess of the total amount (in this section referred to as the standard amount) receivable from the sale of the goods exported during the standard period,

corporation tax payable by the company for the relevant accounting period, so far as it is referable to the income attributable to the said excess, shall be reduced to nil; and the corporation tax referable to the income attributable to the said excess shall be such an amount as bears to the relevant corporation tax, as defined in subsection (10), the same proportion as the income attributable to the said excess bears to the total income brought into charge to corporation tax.

(2) For the purposes of subsection (1) “the income attributable to the said excess” shall be taken to be such sum as bears to the amount of the company's income for the relevant accounting period, which is attributable to the sale of goods (whether exported or not), the same proportion as the amount of the said excess bears to the total amount receivable by the company from such sale in the relevant accounting period.

(3) Where a company claims and proves as respects a relevant accounting period—

(a) that, during the standard period in relation to the trade, no goods were, in the course of the trade, exported out of the State or that the standard period is not applicable, and

(b) that, during the relevant accounting period, goods were, in the course of the trade, exported out of the State,

corporation tax payable by the company for the relevant accounting period, so far as it is referable to the income from the sale of the goods so exported, shall be reduced to nil; and the corporation tax referable to the income from the sale of goods so exported shall be such an amount as bears to the relevant corporation tax the same proportion as the income from the sale of goods so exported bears to the total income brought into charge to corporation tax.

(4) For the purposes of subsection (3) “the income from the sale of the goods so exported” shall be taken to be such sum as bears to the amount of the company's income for the relevant accounting period, which is attributable to the sale of goods (whether exported or not), the same proportion as the amount receivable in the relevant accounting period from the sale of goods exported bears to the total amount receivable by the company from the sale of goods (whether exported or not) in the relevant accounting period.

(5) In a case in which the preceding provisions of this section apply, and the export out of the State in the relevant accounting period consisted of or included goods with respect to which section 54 (3) provides for the inclusion thereof in the definition of “goods”, this Part shall have effect subject to the insertion, in subsections (2) and (4), of “and of merchandise (whether exported or not) other than such goods” after “goods (whether exported or not)” wherever the latter words occur.

(6) In relation to a company which has obtained relief from corporation tax under subsection (1) or (3) of this section, from income tax under section 404 (1) or (3) of the Income Tax Act, 1967 (basis of relief from tax on profits from exports), or from corporation profits tax under section 13 (1) or (3) of the Finance (Miscellaneous Provisions) Act, 1956 (basis of relief from corporation profits tax), this section shall apply as respects any accounting period or part of an accounting period of the company within the period of five years commencing on the expiration of the period comprising the company's relevant accounting periods within the meaning of section 53 as if—

(a) “relevant accounting period”, wherever occurring in this Part, referred to it, and

(b) for “shall be reduced to nil” in subsections (1) and (3) of this section there were substituted—

(i) in case it is an accounting period or part of an accounting period within the first of those years, “shall be reduced by 80 per cent.”,

(ii) in case it is an accounting period or part of an accounting period within the second of those years, “shall be reduced by 65 per cent.”,

(iii) in case it is an accounting period or part of an accounting period within the third of those years, “shall be reduced by 50 per cent.”,

(iv) in case it is an accounting period or part of an accounting period within the fourth of those years, “shall be reduced by 35 per cent.”, and

(v) in case it is an accounting period or part of an accounting period within the fifth of those years, “shall be reduced by 15 per cent.”:

Provided that this subsection shall not apply to an accounting period or part of an accounting period falling after the 5th day of April, 1990.

(7) (a) Where a relevant accounting period is a period of less than twelve months, the standard amount shall, for the purpose of ascertaining the excess referred to in subsection (1), be taken to be such part thereof as bears to the whole of the said amount the same proportion as the relevant accounting period bears to twelve months.

(b) Where a relevant accounting period is part of an accounting period of a company, the total amount receivable from the sale of goods (whether exported or not), the total amount receivable from the sale of goods exported out of the State and the amount of the company's income which is attributable to the sale of goods (whether exported or not) shall be taken to be such part of each such amount as bears to the whole of each such amount the same proportion as the length of the relevant accounting period bears to the length of the accounting period of the company.

(8) Where, on or after the day on which the standard period commenced, any change takes place whereby a part of a trade becomes transferred to any person, the standard amount shall, as respects any relevant accounting period in which, or prior to which, the change occurs, be apportioned for the purposes of subsection (1), and every such apportionment shall be made in such manner as the Revenue Commissioners consider just, having regard to all the circumstances.

(9) A reduction shall not be made under this section in respect of corporation tax payable on income from any mining operations.

(10) For the purposes of this section “relevant corporation tax” means the corporation tax which, apart from this section and sections 184 (relief in respect of corporation profits tax losses) and 186 (transitional relief for certain payments and management expenses), would be chargeable for the relevant accounting period exclusive of the corporation tax charged on the company's chargeable gains for that period.

59. —(1) Where a company carries on a trade which consists of or includes the rendering to another person of services by way of subjecting commodities or materials belonging to that person to any process of manufacturing, and all or some of such services are rendered to a person who is not resident in the State in relation to commodities or materials which have been imported into the State and, after the services have been rendered, the commodities or materials, or the products or articles into which they have been converted, are exported out of the State while continuing to belong to that person, the following provisions shall, if the company so elects, apply for the purposes of relief under this Part—

(a) the rendering in the State of such services shall be regarded as the manufacture of goods and any amount receivable in payment therefor shall be regarded as an amount receivable from the sale of goods, and

(b) the company shall be regarded in relation to any such services as are rendered to a person who is not resident in the State as having exported goods out of the State and any payment receivable by it for the services shall be regarded as an amount receivable from the sale of goods so exported.

(2) Any election under subsection (1) shall be made by notice in writing delivered to the inspector and shall have effect as respects every relevant accounting period for which relief under this Part is claimed by the company by which it is made and shall also have effect as if it were an election made under section 29 of the Finance Act, 1966 (profits from exports: relief from corporation profits tax), or section 406 of the Income Tax Act, 1967 (certain manufacturing services), or both of those sections:

Provided that where, before an election was made by it under this section, a company has made a distribution for an accounting period and the tax credit to which the recipient of that distribution is entitled exceeds the tax credit to which that recipient would have been entitled if the election had been made before the date of the distribution, any relief from corporation tax which would otherwise have been allowable to the company shall be reduced by the amount of the excess.

(3) Where for any year of assessment the income of any person consists of or includes a distribution in respect of which the proviso to subsection (2) has had effect, the person may claim to have the income tax chargeable on his income for that year reduced to the amount which would have been so chargeable if the election under subsection (1) had been made before the date of the distribution.

(4) Where for any accounting period the franked investment income of a company consists of or includes a distribution in respect of which the proviso to subsection (2) has had effect, the company may claim to have paid to it an amount equal to the excess of the tax credit to which it was entitled in respect of the distribution on the date on which the distribution was made over the tax credit to which it would have been entitled in respect of the distribution if the election under subsection (1) had been made before the date of the distribution:

Provided that for the purposes of section 15 (4) (management expenses: investment companies), section 25 (set-off of losses etc. against franked investment income) and section 26 (set-off of loss brought forward or terminal loss: financial concerns) any such distribution as aforesaid shall be treated as representing income equal to the aggregate of the amount of that distribution and the amount of the tax credit to which the company would have been entitled if the election under subsection (1) had been made before the date of the distribution.

(5) An election made under section 29 of the Finance Act, 1966 , or section 406 of the Income Tax Act, 1967 , shall have effect as if it were an election made under subsection (1).

(6) The inspector may by notice in writing require a company claiming relief from tax by virtue of subsection (1) to furnish him with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 58 (1) (3) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

60. —(1) In this section “engineering services” means design and planning services the work on the rendering of which is carried out in the State in connection with chemical, civil, electrical or mechanical engineering works executed outside the State.

(2) Where a company carries on a trade which consists of or includes the rendering to another person of engineering services and all or some of such services are rendered to a person who is not resident in the State, the following provisions shall, if the company so elects, apply for the purposes of relief under this Part—

(a) the rendering of such services shall be regarded as the manufacture of goods and any amount receivable in payment therefor shall be regarded as an amount receivable from the sale of goods, and

(b) where such services are rendered to a person who is not resident in the State, the company shall be regarded as having exported goods out of the State and any payment receivable by it for the services shall be regarded as an amount receivable from the sale of goods so exported.

(3) Any election under subsection (2) shall be made by notice in writing delivered to the inspector and shall have effect as respects every relevant accounting period for which relief under this Part is claimed by the company by which it is made and shall also have effect as if it were an election made under section 34 of the Finance Act, 1968 (relief on engineering services in relation to works outside the State).

(4) An election made under section 34 of the Finance Act, 1968 , shall have effect as if it were an election made under subsection (2).

(5) The inspector may by notice in writing require a company claiming relief from tax by virtue of subsection (2) to furnish him with such information or particulars as may be necessary for the purpose of giving effect to that subsection, and section 58 (1) (3) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

61. —(1) Where a company claims relief pursuant to this Part and it appears to the inspector that, in the case of goods of a particular class, the relationship between the amount receivable from the sale in any period of goods exported and the amount receivable from the sale in that period of goods not exported is affected by the payment by the company of any duty in respect of the goods or the materials used in their manufacture, the inspector shall apply subsection (2) or (3), whichever appears to him to be appropriate, in arriving at an amount receivable from the sale in that period of such goods, and any relief to the company by reference to the sale of goods in that period shall be computed accordingly.

(2) (a) An amount receivable from the sale of goods exported out of the State shall be deemed to be increased by the amount of any drawback, rebate or repayment of duty, being duty payable in the State, received by the company in respect of such goods and to be reduced by the amount of any duty paid in any territory outside the State by the company in respect of the import of such goods into that territory.

(b) An amount receivable from the sale of goods not exported shall be deemed to be increased by the amount of any rebate or repayment of duty, being duty payable in the State, received by the company in respect of such goods.

(3) (a) An amount receivable from the sale of goods exported out of the State shall be deemed to be reduced by the amount of any duty paid in any territory outside the State by the company in respect of the import of such goods into that territory.

(b) An amount receivable from the sale of goods not exported shall be deemed to be reduced by the amount of any duty, being duty payable in the State, paid by the company in respect of such goods.

(4) The inspector may by notice in writing require the company to furnish him with such information or particulars as may be necessary for the purpose of giving effect to this section, and section 58 (1) (3) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

(5) Where an accounting period of a company is part of a period of account of the company the amount of any duty and the amount of any drawback, rebate or repayment of duty shall for the purposes of this section be such sum as bears to these amounts for the period of account the same proportion as the length of the accounting period bears to the length of the period of account.

62. —(1) Where a company claiming relief under this Part (here-after in this subsection referred to as the buyer) buys from another person (hereafter in this subsection referred to as the seller) and—

(a) the seller has control over the buyer or, the seller being a company or partnership, the buyer has control over the seller or some other person has control over both the seller and the buyer, and

(b) the price in the transaction is less than that which might have been expected to obtain if the parties to the transaction had been independent parties dealing at arm's length,

then, the income of the buyer which is attributable to sales shall, for the purposes of this Part, be computed as if the price in the transaction had been that which would have obtained if the transaction had been a transaction between independent persons dealing as aforesaid.

(2) In this section “control” has the meaning assigned to it by section 158.

(3) Where a company (hereafter in this subsection referred to as the succeeding company) succeeds to a trade or a part of a trade which, on or after the 6th day of April, 1960, was carried on by another company (hereafter in this subsection referred to as the original company) and the original company has or could have made a claim to relief under this Part or under Chapter IV of Part XXV of the Income Tax Act, 1967 , then relief in so far as such relief relates to the trade or the part of the trade in question shall be granted to the succeeding company only as respects the remaining relevant accounting periods for which such relief might have been claimed by the original company if it had continued to carry on the trade or the part of the trade in question.

(4) The inspector may by notice in writing require the company to furnish him with such information or particulars as may be necessary for the purposes of this section, and section 58 (1) (3) shall have effect as if the matters of which proof is required thereby included the information or particulars specified in a notice under this subsection.

(5) Where a company claims relief under this Part otherwise than by virtue of the provisions of section 54 (3), the foregoing provisions of this section shall have effect only in respect of transactions and successions occurring after the 19th day of April, 1961.

63. —(1) Upon request made to him by an authorised officer at any premises of a company claiming relief under this Part, any person employed by the company at the premises shall produce to the authorised officer all such invoices, accounts, books and other documents and records whatsoever relating to purchase and sale of goods by the company as may be in such person's power, possession and procurement and, on production thereof, shall permit the authorised officer to examine them and take copies thereof or extracts therefrom.

(2) If a person requested under subsection (1) does not comply with the requirements of that subsection, he shall be liable to a penalty of £100.

(3) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(4) Where, in pursuance of this section, an authorised officer requests production of any documents or records, he shall, on request, show his authorisation for the purposes of this section to the person concerned.

(5) In this section “authorised officer” means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this section.

64. —(1) This section applies to a distribution (hereafter in this section referred to as a relevant distribution) made, or deemed to have been made, by a company for an accounting period wholly or in part out of—

(a) the company's income for that accounting period the corporation tax in respect of which has been reduced under this Part, or

(b) a distribution or distributions received by the company in that accounting period in respect of which the tax credit is determined in accordance with this section.

(2) Where a relevant distribution is made or is deemed for the purposes of this section to have been made by a company for an accounting period, the tax credit to which the recipient of the relevant distribution is entitled in respect of it shall be an amount arrived at by applying a fraction determined by the formula to the amount of the relevant distribution

where—

A is an amount arrived at by applying to the amount of the company's distributable income for the accounting period, excluding distributions received by the company in that period, the fraction where D is the standard rate per cent. for the year of assessment in which the relevant distribution is made reduced in the same proportion as the company's liability to corporation tax on its income for the accounting period is reduced under section 58, subject to paragraph (c) of the proviso to section 182 (3) (transitional relief for income tax losses, etc.) and paragraph (iii) of the proviso to section 184 (3) (relief in respect of corporation profits tax losses),

B is the aggregate of the tax credits in respect of the amount referred to in subsection (4) (b), and

C is the amount of the company's distributable income for the accounting period.

(3) For the purposes of this section—

(a) where the total amount of the distributions made by a company for an accounting period exceeds the distributable income of the company for that accounting period, the excess shall be deemed for the purposes of this section to be a distribution for the immediately preceding accounting period;

(b) where the total amount of the distributions made or deemed under paragraph (a) to have been made by a company for the immediately preceding accounting period exceeds the distributable income of the company for that accounting period, the excess shall be deemed to be a distribution for the next immediately preceding accounting period and so on.

(c) where the total amount of the distributions made or deemed under this subsection to have been made for the first accounting period for which the company came within the charge to corporation tax exceeds the distributable income of the company for that accounting period—

(i) the excess shall be deemed to be a distribution for the company's period of account which ended on the accounting date last before the 6th day of April, 1975, or, if there was no such period of account, to be a distribution for the year which ended on the 5th day of April, 1976, and

(ii) the tax credit in respect of the excess which is so deemed shall be an amount equal to the amount of income tax which, under section 410 of the Income Tax Act, 1967 , the company would have been entitled to deduct from a dividend of such an amount as after deduction of that tax would equal the amount of the excess and for this purpose it shall be assumed that the dividend was paid on the 5th day of April, 1976, and was in respect of the said period of account or year which ended on the 5th day of April, 1976, as the case may be.

(4) For the purposes of this section the distributable income of a company for an accounting period shall be the aggregate of the following amounts—

(a) the income of the company charged to corporation tax for the accounting period as defined in section 28 (8) less the amount of corporation tax payable by the company for the accounting period which is attributable to that income, and

(b) an amount equal to the distributions received by the company in the accounting period which is comprised in its franked investment income of the accounting period, other than franked investment income against which relief is given under section 15 (4), 25 or 26, and which relief was not subsequently withdrawn under the provisions of those sections.

(5) Where a period of account for or in respect of which a company makes a distribution is not an accounting period and part of the period of account falls within an accounting period, the proportion of the distribution to be treated for the purposes of this section as being for or in respect of the accounting period shall be the same proportion as the said part of the period of account bears to the whole of that period.

(6) Where a company makes a distribution which is not expressed to be for or in respect of a specified period the distribution shall be treated for the purposes of this section as having been made for the accounting period in which it is made.

(7) Where the income of a company for an accounting period includes a dividend from which income tax was deducted under section 456 of the Income Tax Act, 1967 , then for the purposes of this section the amount of tax so deducted shall be deemed to be a tax credit in respect of a distribution of an amount equal to the amount of the dividend reduced by the amount of tax so deducted.

(8) In relation to a relevant distribution (other than a supplementary distribution under section 65), section 5 (dividend warrants) and section 83 (5) (Schedule F) shall apply so that the statements provided for by those sections shall show, in addition to the particulars to be given apart from this section, the amount of the tax credit which would apply in respect of the distribution if it were not a relevant distribution.

(9) The inspector may by notice in writing require a company to furnish him with such information or particulars as may be necessary for the purposes of this section and if the company does not comply with the requirements of the notice it shall be liable to a penalty of £100.

65. —(1) Where a company makes a distribution in respect of any right or obligation to which section 178 (dividends at gross rate or of gross amount) relates and the tax credit in respect of that distribution is calculated in accordance with section 64 then, the company shall make a supplementary distribution of an amount equal to the excess of the amount of the tax credit which would have applied to the distribution if section 64 had not been enacted over the amount of the tax credit which in accordance with the said section 64 applies to the distribution, and the person to whom the distribution and the supplementary distribution are made shall be regarded as having received one distribution consisting of the aggregate of the distribution and the supplementary distribution.

(2) Notwithstanding the provisions of section 88 the recipient of a supplementary distribution under subsection (1) shall not be entitled to a tax credit in respect of it.

(3) In relation to any supplementary distribution within the meaning of subsection (1), section 5 shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, the separate amount of such supplementary distribution.

66. —(1) Nothing in this section shall affect the amount of income for the purposes of Schedule F which is represented by a distribution.

(2) In this section the relieved amount for a year of assessment in relation to an individual is an amount determined by the formula

where—

A is the aggregate amount of income on which the individual is chargeable under Schedule F for that year of assessment in respect of distributions to which section 64 applies,

B is the aggregate amount of the tax credits which are included in the amount referred to at A, and

C is the standard rate per cent. for the year of assessment.

(3) (a) An individual whose income for a year of assessment includes a distribution or distributions (in this subsection referred to as the said distribution or the said distributions) to which section 64 applies shall be assessed and charged to tax as if—

(i) the highest part of his income were the relieved amount, and

(ii) the next highest part of his income were the excess (in this section referred to as the said excess) of the amount of income represented by the said distribution (or the aggregate of the said distributions as the case may be) over the relieved amount.

(b) Notwithstanding the provisions of section 64, the total amount of the tax credits which, by virtue of section 88, an individual may claim to have set against the tax charged on his income or to have paid to him, shall—

(i) in relation to so much of the relieved amount as is charged to tax at a rate or rates higher than the reduced rate be an amount equal to the amount of tax so charged,

(ii) in relation to that part of the said excess which is charged to tax at a rate or rates higher than the reduced rate be a sum equal to income tax at the standard rate for the year of assessment in which the distribution is made on that part of the said excess,

(iii) in relation to so much of his income which is represented by the said distribution (or the aggregate of the said distributions as the case may be) as is charged to tax at the reduced rate be tax at the reduced rate on the amount so charged together with tax on the same amount at a rate per cent. equal to

where—

D is the difference between the standard rate per cent. and the reduced rate per cent. for the year of assessment and for this purpose “the reduced rate per cent.” for a year of assessment means 26 where the reduced rate for that year is 26 per cent. and similarly with reference to the reduced rate per cent. for a year of assessment for which the reduced rate is other than 26 per cent.,

E is the rate of imputation per cent. for the year of assessment, and for this purpose “the rate of imputation per cent.” for a year of assessment means an amount determined by the formula

where A and B have the same meanings as in subsection (2), and

F is the standard rate per cent. for the year of assessment, and

(iv) in relation to so much of his income which is represented by the said distribution (or the aggregate of the said distributions as the case may be) as is not included in his taxable income be a proportionate part of the tax credit which under section 64 is applicable to the said distribution (or, as the case may be, a proportionate part of the aggregate amount of the tax credits which under section 64 are applicable to the said distributions).

67. —Where for any year of assessment the income of an individual who for that year is not resident in the State includes an amount in respect of a distribution to which section 64 applies, the distribution shall be treated as representing income equal to an amount determined by the formula

where—

A is the amount of the tax credit to which the individual would have been entitled in respect of the distribution if he were resident in the State for the year of assessment, and

B is the standard rate per cent. for that year of assessment.

68. —An appeal to the Appeal Commissioners shall lie on any question arising under this Part in like manner as an appeal would lie against an assessment to corporation tax and the provisions of this Act relating to appeals shall apply and have effect accordingly.