Part 17Manufactured payments and repos
Chapter 3Manufactured overseas dividends
794Company receiving manufactured overseas dividend from foreign payer
1
This section applies if—
a
a person pays a manufactured overseas dividend,
b
section 923(1) of ITA 2007 (foreign payers of manufactured overseas dividends: the reverse charge) applies, and
c
the amount of income tax required to be accounted for and paid under that section has been accounted for and paid.
2
Subsections (3) and (4) apply in relation to the recipient, and companies claiming title through or under the recipient, for all purposes of the Corporation Tax Acts except Part 5 of CTA 2009 (loan relationships).
3
The manufactured overseas dividend is treated as if it were—
a
an overseas dividend of an amount equal to the gross amount of the manufactured overseas dividend, but
b
paid after the withholding from it, on account of overseas tax, of the amount accounted for and paid as a result of section 923 of ITA 2007.
4
The amount mentioned in subsection (3)(b) is accordingly to be treated as an amount withheld on account of overseas tax instead of as an amount on account of income tax.
5
Subsections (3) and (4) are subject to—
a
section 797 (manufactured overseas dividends: amounts exceeding underlying payments), and
b
section 798 (manufactured overseas dividends less than underlying payments).