This section is concerned with the case where, by virtue of section 36 (2) of the Capital Gains Tax Act, 1975, a resident company is liable for tax on a share of a chargeable gain accruing to a non-resident company in which it is a shareholder, but the tax is actually paid by the non-resident company. The section provides that, in such a case, the payment of the tax by the non-resident company is not to be regarded, for purposes of corporation tax, as a payment to the resident company.
SECTION 159.
Question proposed: " That section 159 stand part of the Bill."
In other words, there would need to be a payment on behalf of the resident company?
Yes.
Question put and agreed to.