If, under the Convention, income from a State derived from a person residing in the other country can be taken into account for tax purposes in both countries, the latter country must benefit from relief from double taxation. In Ireland, the exemption must be granted by setting off the Tax of the Irish Tax Due on the Income of the Federal Republic liable to the tax of the Federal Republic of Germany which has borne the income, including, in the case of dividends (with the exception of fixed-rate dividends), a reasonable share of the Federal Republic`s corporation tax on profits, from which dividends are paid. Otherwise, income from sources in Ireland is generally exempt from the tax of the Federal Republic of Germany, but is taken into account in determining the rate to be levied on the taxable person`s other income. However, special treatment applies to dividends paid by a company established in Ireland to a shareholder in the Federal Republic of Germany who owns either a natural person or a company of less than 25%. the voting shares of the paying company. In such a case, the net amount of the dividend of the Federal Republic of Germany must be recorded after deduction of a credit of 18%. the net dividend [Article XXII]. 3. The competent authorities of the Contracting States shall clarify, by mutual agreement, any doubts which arise as to the taxes to which this Convention is to apply. (a) the agreements for exemption from income tax, income tax, income tax, income tax or corporation tax, as well as any similar taxes levied under the law of the State or the law of the Federal Republic of Germany, provided for in the list of this Decree, have been concluded with the Government of the Federal Republic of Germany; and 1. Where a Member State established in a Contracting State demonstrates that the action of the tax authorities of the Contracting States has resulted or will entail double taxation contrary to the provisions of this Convention, it shall be entitled to present its case to the State in which it is established. If his claim is deemed worthy of examination, the competent authority of the State to which the claim is subject shall endeavour to reach an agreement with the competent authority of the other State on the prevention of double taxation.
CONSIDERING that, by subsection (1) of section 44 of the Finance Act 1958 (no. .