43. Tax treatment of certain dividends, etc.

(1) The Principal Act is amended -

(a) in section 21A(3) by substituting "but subject to subsection (4) and section 21B" for "but subject to subsection (4)", and

(b) by inserting the following section after section 21A:

"21B. Tax treatment of certain dividends.

(1)

(a) In this section -

'profits', in relation to a company for a period, means -

(i) where the profit and loss account, or income statement, of the company for that period is required to be laid before the annual general meeting of the company, the amount of profits, after taxation, as shown in that profit and loss account, or that income statement, and

(ii) in any other case, the amount of profits, after taxation, as shown in the profit and loss account, or income statement, of the company which is prepared in accordance with an accounting framework that, in the territory in which the company is incorporated, is generally accepted as presenting a fair view of the profit for that period;

'relevant territory' means -

(i) a Mem

…