(1) Chapter 2 of Part 13 of the Principal Act is amended -
(a) in section 438(6) by substituting "to a company not resident in a Member State of the European Communities and, for the purposes of this subsection, a company is a resident of a Member State of the European Communities if the company is by virtue of the law of that Member State resident for the purposes of tax (being, in the case of the State, corporation tax and, in any other case, being any tax imposed in the Member State which corresponds to corporation tax in the State) in such Member State" for the words "to a company not resident in the State", and
(b) by inserting the following section after section 438:
"438A. Extension of section 438 to loans by companies controlled by close companies.
(1) In this section 'loan' includes advance.
(2) Subject to subsection (5), where a company which is controlled by a close company makes a loan which, apart from this section, does not give rise to a charge under subsection (1) of se
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