^[2]>

(1) Subject to subsections (3) and (4), where tax has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements and—

(a) the interest payment is, or but for an exemption or relief from tax would be, taken into account in computing the total income of an individual for the tax year in which the tax was deducted for the purposes of income tax, and

(b) the individual is resident in the State for that tax year,

then—

(i) the individual may claim a credit for the tax deducted from the payment against any income tax chargeable on that individual for that year and, in determining the amount of tax payable on the individual’s total income for that year, credit shall be given for the tax deducted from the interest payment and the amount of the credit shall be the amount of tax deducted from the interest payment, and

(ii) where—

(I) the tax deducted from the interest payment exceeds any such income tax chargeable, the excess shall be repaid, or

(II) no such income tax is chargeable, an amount equal to the tax deducted from the interest payment shall be repaid to the individual.

^<[2]

^[2]>

(2) Subject to subsections (3) and (4), where tax has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements and—

(a) the interest payment is, or but for an exemption or relief from tax would be, taken into account in computing the chargeable gains of an individual for the tax year in which the tax was deducted for the purposes of the Capital Gains Tax Acts, and

(b) the individual is resident in the State for that tax year,

then—

(i) the individual may claim a credit for the tax deducted from the payment against the capital gains tax chargeable on that individual for that year and, in determining the amount of tax payable on the chargeable gains of that individual for that year, credit shall be given for the tax deducted from the interest payment and the amount of the credit shall be the amount of tax deducted from the interest payment, and

(ii) where—

(I) the tax deducted exceeds any such capital gains tax, the excess shall be repaid to the individual, or

(II) no such capital gains tax is chargeable, an amount equal to the tax deducted shall be repaid to the individual.

^<[2]

^[2]>

(3) (a) The credit referred to in subsection (1) or (2), as the case may be, shall apply only after the application of any other credit to which the individual may be entitled under any arrangement made under section 826 in respect of any tax deducted from the payment under provisions other than those referred to in subsection (1) or (2).

(b) Subsection (1) or (2) shall not apply where—

(i) the individual referred to in the subsection concerned has obtained relief under the law of a territory outside the State in respect of tax that has been deducted from an interest payment in a relevant territory under provisions applicable in such territory in accordance with the Directive or the arrangements, and

(ii) the individual was resident in that territory or was treated as being resident in that territory under arrangements made under section 826 for the year of assessment in which the tax was deducted.

^<[2]