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Amendment of section 472D of Principal Act (relief for key employees engaged in research and development activities)
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13. Section 472D of the Principal Act is amended—
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(a) in subsection (1), in paragraph (b) of the definition of “key employee”, by substituting “whose emoluments” for “the emoluments”,
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(b) by substituting the following for subsection (2):
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“(2) (a) Where, as respects an accounting period, a relevant employer surrenders an amount under section 766(2A) for the benefit of a key employee, then subject to subsection (3), on the making of a claim, that employee shall be entitled for a tax year to have the income tax charged on his or her relevant emoluments for that tax year reduced by the amount surrendered.
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(b) The tax year referred to in paragraph (a) is the tax year following the tax year during which the accounting period, referred to in that paragraph, of the relevant employer ends.
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(c) Notwithstanding that, for the tax year for which a claim is made under this section, an employee is no longer a key employee of the company that surrendered an amount referred to in paragraph (a) but is an employee of that company, then he or she shall be entitled to have the income tax charged on emoluments from that company for that tax year reduced by the amount so referred to.”,
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(c) in subsection (3)—
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(i) in paragraph (a)—
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(I) by substituting “the employee concerned or” for “a key employee including”, and
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(II) by substituting “applies” for “apply”,
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and
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(ii) by substituting the following for paragraph (b):
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“(b) Paragraph (a) also applies where—
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(i) paragraph (a) or (b) of subsection (4) applies, or
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(ii) subsection (2) and paragraph (a) or (b) of subsection (4) apply for the same tax year.”,
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(d) in subsection (4)(a) by substituting “emoluments from that employer” for “relevant emoluments” in each place,
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(e) by substituting the following for subsection (6):
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“(6) No reduction in income tax shall be given under this section for any tax year unless all tax deductible for that tax year from emoluments paid by the employer to the employee to whom the amount was surrendered has been remitted by that employer to the Collector- General in accordance with regulations made under Chapter 4 of Part 42.”,
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(f) by deleting subsections (7) and (8), and
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(g) in subsection (9) by substituting “an individual makes a claim for relief under this section or has the income tax charged on his or her emoluments reduced as a consequence of a claim under this section” for “an individual makes a claim for relief under this section”.
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