Income Tax Act, 1967.
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Application of section 387 to certain dividends. |
391.—(1) In this section “company” means a company which has obtained relief under section 11 of the Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 , in respect of profits derived from the working of an existing mine (as defined in the said section 11). | |
(2) Notwithstanding that subsection (2) of the said section 11 no longer has effect, section 387 shall apply to a dividend paid by the company after the commencement of this Act in a case in which the dividend is paid out of profits the net income tax on which has been reduced by virtue of the said section 11. | ||
(3) For the purpose of applying section 387 to any such dividend the day on which the company commenced to carry on the trade of working the existing mine or the 6th day of April, 1954 (whichever is the later) shall be taken to be the commencement day. | ||
(4) (a) There shall be excluded from the application of section 387 any dividend paid by the company out of profits of the existing mine as respects which the dividend period is a period prior to the 6th day of April, 1956, and, in the case of any such dividend as respects which the dividend period consists of a part prior to the 6th day of April, 1956, and a part subsequent to the 5th day of April, 1956, there shall be excluded from the application of that section such part of the dividend as is referable to the part of the dividend period prior to the 6th day of April, 1956, but the foregoing provisions of this paragraph are without prejudice to the entitlement of the company to deduct income tax from any such dividend or any such part of a dividend. | ||
(b) In paragraph (a) “dividend period” means the period out of profits of which a dividend is paid. |