(1) The Principal Act is amended -

(a) in section 410 -

(i) in subsection (1)(a) -

(I) by the substitution of the following definition for the definition of "tax":

"'tax', in relation to a relevant territory other than the State, means any tax imposed in the relevant territory which corresponds to corporation tax in the State;",

and

(II) by the insertion of the following definition:

"'relevant territory' means -

(i) a relevant Member State,

(ii) not being a territory referred to in subparagraph (i), a territory with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or

(iii) not being a territory referred to in subparagraph (i) or (ii), a territory with the government of which arrangements have been made which on completion of the procedures set out in section 826(1) will have the force of law;",

(ii) in subsection (1)(b) -

(I) in subparagraph (i), by the substitution of "relevant territory" for "relevant Member State", and