This section provides for the tax credit to be given to recipients of dividends and other distributions by an Irish resident company. The value of the tax credit will be the equivalent of the income tax which hitherto has been deductible from a gross dividend. By virtue of section 83 (2) the income represented by the distribution will be equivalent to the amount of distribution grossed up at the standard rate. An Irish resident company which is entitled to any special relief from tax on a distribution may claim payment of tax credit. A person other than an Irish resident company may set the tax credit against his income tax liability and may claim payment of any excess of the credit over that liability. This also applies to a non-resident person who is entitled, for example, under a double taxation agreement, to a tax credit in respect of a distribution.
SECTION 88.
Question proposed: "That section 88 stand part of the Bill."
Question put and agreed to.