Commentary on Sections Overview Overview Section 581: Manufactured overseas dividends
1734.This section deals with the income tax treatment of MODs in the hands of the recipient (or, if different, the owner). It is based on paragraph 4(1), (2), (3) and (4) of Schedule 23A to ICTA.
1735.Subsections (1) and (3) together ensure that if an income tax payer claims title to the MOD through or under a recipient (such as a nominee), the MOD is still treated for income tax purposes as if it was a real overseas dividend even if the recipient is not an income tax payer.
1736.Subsection (6) identifies the provisions of the Income Tax Acts in relation to which the deeming provisions in subsections (4) and (5) have effect: namely, those applicable to UK residents or persons carrying on business through a UK branch or agency.