(1) Schedule 24 to the Principal Act is amended in paragraph 9I-

(a) in subparagraph (1), in the definition of "tax", by deleting ", for the purposes of the definition of 'excluded dividend' in this subparagraph,",

(b) in subparagraph (4)(b) by substituting "subject to corporation tax at the rate specified in section 21A(3)(a)" for "chargeable to corporation tax under Case III of Schedule D", and

(c) by inserting the following subparagraph after subparagraph (4):

"(4A)

(a) Where the relevant profits in relation to the relevant dividend referred to in clause (a) or (b) of subparagraph (4) have not been subject to tax, which corresponds to corporation tax in the State, but are attributable to profits of a company which have been subject to such tax, then, for the purposes of subparagraph (4), the rate per cent of tax, which is referred to in clause (a) or (b) of that subparagraph as applicable to the relevant profits in relation to the relevant dividend, shall be deemed to be the rate per cent of tax, which corresponds to corporation tax in the State, applicable to those profits of that company which have been subject to such tax.

(b) For the purposes of clause (a) and subparagraphs (3) and (4)-