Commentary on Sections Overview Overview Section 15: Rule 7: credit for underlying tax on dividend paid to sub-10% associateSection 16: Rule 8: credit for underlying tax on dividend paid by exchanged associate
59.These sections specify when, in principle, unilateral credit relief is allowed for underlying tax on a dividend paid in certain cases in which section 14 does not apply. They are based on section 790(5) to (9) of ICTA, and are identical in every respect except for condition C (and the subsections which insert that condition).
60.Subsection (2) provides that three conditions must all be met if the section under review is to enable credit to be given under section 9.
61.Condition A in subsection (3) is the same as condition A in section 14(3).
62.Condition B in subsection (4) is met if condition B in section 14(4) is not.
63.Subsection (5) follows on from subsection (4). To lead into subsection (6), it defines “the held percentage” in that subsection.
64.Condition C, in subsection (6), sets out the circumstances in which credit can in principle be given under the section under review even though section 14 does not apply.
65.Subsections (7) to (10) are interpretative.