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156. Franked investment income and franked payments.

(1) Income of a company resident in the State which consists of a distribution made by another company resident in the State shall be referred to in the Corporation Tax Acts as “franked investment income” of the company, and the amount of the franked investment income of such a company shall be—

(a) in a case where the company is entitled to a tax credit in respect of the distribution, an amount equal to the aggregate of the amount or value of the distribution and the amount of the credit, and

(b) in any other case, the amount or value of the distribution.

(2) A reference in the Corporation Tax Acts to “a franked payment” in relation to a company resident in the State which makes a distribution shall be construed as a reference to—

(a) in a case where a recipient of the distribution is entitled to a tax credit in respect of the distribution, the sum of the amount or value of the distribution and the amount of the tax credit, and

(b) in any other case, the amount or value of the distribution,

and references to any accounting or other period in which a franked payment is made are references to the period in which the distribution in question is made.

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