49By contrast with dividends originating from resident subsidiaries, the legislation at issue in the main proceedings did not permit avoidance of taxation at the level of the distributing subsidiary, whilst dividends received both from resident subsidiaries and from non-resident subsidiaries were subject to the advance payment when redistributed. Consequently, so far as dividends received from resident subsidiaries were concerned, when they were distributed the tax credit was set off against the amount of the advance payment due, without that advance payment reducing the total amount of the dividends available for redistribution. As regards dividends received from non-resident subsidiaries, however, since the parent company did not receive a tax credit on those dividends, the effect of applying the advance payment was to reduce the total amount of dividends available for distribution.
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