S.L. 463.40 Art. 8Distribution and dividends. 

(1) Where an undertaking has benefited from the provisions of regulations 5 and 6, the investment tax credit shall be

 deemed to have relieved from tax so much of that undertaking’s chargeable income which, when multiplied by the rates of tax at which 

it was chargeable in that year, is equal to the investment tax credit and where the undertaking or any subsequent undertaking distributes the income which is so deemed to have been relieved from tax, such undertaking or undertakings shall state in the dividend warrant pertaining to any such distribution that such income has been relieved from tax by an investment tax credit in accordance with regulations 5

and 6 and that tax which has so been relieved shall not be available for refund for any purpose of the Income Tax Act.

(2) The chargeable income which is deemed to have been relieved from tax in accordance with sub-regulation (1) shall, for the purposes of the Income Tax Act, be allocated to the respective tax accounts of the company in question in accordance with the Tax

Accounts (Income Tax) Rules and any dividends, or part thereof, distributed from such income shall be exempted from income tax in the hands of the members of the company on receipt of such distribution.

(3) Where a dividend referred to in sub-regulation (1) is distributed to a member which is also a company (in this sub-regulation referred to as "the second company"), the said dividend shall likewise be distributed by the second company to its members in the form of dividends exempt from income tax in the hands of recipients, and where a member of the second company is again a company, the preceding provisions shall apply as mutatis mutandis though references to the first company were references to the second company, and as though references therein to the second company were references to that member, and the principle set out in this sub-regulation shall continue to be applied for as long as such income or part thereof to which this regulation applies are distributed by way of dividends.