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6 1967



Irish Dividends, etc.

Chapter I

General Provisions as to Dividends

Deductions of tax from dividends.

456. —The profits or gains to be charged on any body of persons shall be computed in accordance with the provisions of this Act on the full amount of the same before any dividend thereof is made in respect of any share, right or title thereto, and the body of persons paying such dividend shall be entitled to deduct the tax appropriate thereto.

Amount of dividend from which deduction is to be made.

457. —(1) The provisions of section 456 shall, in relation to any dividend paid by any body of persons, be construed as authorising the deduction of tax from the full amount paid out of profits and gains of the said body which—

(a) have been charged to tax, or

(b) would fall, under the provisions of this Act, to be included in computing the liability of the said body to assessment to tax for any year if the said provisions required the computation to be made by reference to the profits and gains of that year and not by reference to those of any other year or period.

(2) For all the purposes of this Act the amount of any dividend paid by any body of persons from which a deduction of tax is authorised by section 456 as amended by the provisions contained in subsection (1), shall be deemed to be income of such amount as would, after such deduction of tax as is so authorised, be equal—

(a) if tax is deducted from such dividend, to the net amount received, and

(b) in every other case, to the amount received.

(3) Section 458 shall have effect in relation to dividends with due regard to the provisions contained in subsection (2).