267I Exemptions from tax and withholding tax.

(1) Where, apart from this section, section 238, 246(2) or 257 would apply to a payment of interest or royalties to which this Chapter applies, those sections shall not apply to that payment.

(2) A company which, by virtue of the law of a Member State other than the State, is resident for the purposes of tax in that Member State, shall not be chargeable to corporation tax or income tax in respect of interest or royalties to which this Chapter applies except where the interest is, or as the case may be the royalties are, paid to the company in connection with a trade which is carried on in the State by that company through a permanent establishment.