Income Tax Act, 1967.

Effect on interest of reliefs given by discharge or repayment.

551.—(1) Subject to subsection (2)—

(a) where relief from tax charged by any such assessment as is referred to in section 550 (1) is given to any person by a discharge of any of that tax, such adjustment shall be made of the amount payable under this section in relation to the assessment, and such repayment shall be made of any amounts previously paid under this section in relation thereto, as are necessary to secure that the total sum, if any, paid or payable under this section in relation to the assessment is the same as it would have been if the tax discharged had never been charged, and

(b) where relief from tax paid for any year of assessment is given to any person by repayment, he shall be entitled to require that the amount repaid shall be treated for the purposes of this subsection, so far as it will go, as if it were a discharge of the tax charged on him (whether alone or together with other persons) by any assessment for the same year, so, however, that it shall n0t be applied to any assessment made after the relief was given and it shall not be applied to more than one assessment so as to reduce, without extinguishing, the amount of tax charged thereby.

(2) No relief, whether by way of discharge or repayment, shall be treated as—

(a) affecting tax charged by any assessment to income tax unless it is a relief from income tax, or

(b) affecting tax charged by any assessment to sur-tax unless it is a relief from sur-tax.