(1) The Principal Act is amended in section 21B -

(a) in subsection (1)(b) by substituting the following for subparagraph (i):

"(i) references to a company by which a dividend is paid apply only to a company, where throughout the period out of the profits of which the dividend was paid -

(I) the company was, by virtue of the law of a relevant territory, resident for the purposes of tax in such a relevant territory, and for this purpose 'tax', in relation to a relevant territory, means any tax imposed in the relevant territory which corresponds to corporation tax in the State, or

(II) the principal class of shares of the company or, where the company was a 75 per cent subsidiary of another company, the principal class of shares of that other company, was substantially and regularly traded on a stock exchange in the State, on one or more than one recognised stock exchanges in a relevant territory or territories or on such other stock exchange as may be approved of by the Minister for Finance for the purposes of Chapter 8A of Part 6,",

(b) in subsection (1) by inserting the following after paragraph (b):

"(c) For the purposes of paragraph (b)(i)(II), sections 412 to 418 shall apply as those sections would apply for the purposes of Chapter 5 of Part 12 if section 411(1)(c) were deleted.",