Finance Act, 1942
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Amendment of section 41 of the Finance Act, 1941. |
17.—(1) Section 41 of the Finance Act, 1941 (No. 14 of 1941), shall be construed and have effect and be deemed always to have had effect as if the following sub-section were inserted therein in lieu of the sub-section (3) now contained therein, that is to say:— | |
“(3) In sub-section (1) of this section, the expression ‘standard payments in respect of the said new issue’ means the amount necessary to provide for whichever of the following amounts is the greater, that is to say:— | ||
(a) the aggregate amount of the following payments in respect of the said accounting period or part of an accounting period, that is to say:— | ||
(i) the dividends on such (if any) paid-up preference stock or shares as was included in the said new issue—at the fixed rate at which such dividends are payable, and | ||
(ii) dividends at the rate of six per cent. per annum on such (if any) paid-up ordinary stock or shares as was included in the said new issue, and | ||
(iii) interest on such (if any) debentures or debenture stock (other than debentures or debenture stock issued to replace an equal amount of debentures or debenture stock issued before the expiration of the trade year which ended in the year ended on the 31st day of August, 1939) as were included in the said new issue—at the fixed rate at which such interest is payable, or | ||
(b) the aggregate amount of the following payments in respect of the said accounting period or part of an accounting period, that is to say:— | ||
(i) dividends on such (if any) paid-up preference stock or shares as was included in the said new issue, if the company was incorporated before the 1st day of January, 1934, at the rate of seven and one-half per cent. per annum or, if the company was incorporated on or after that date, at the rate of nine per cent per annum, and | ||
(ii) dividends on such (if any) paid-up ordinary stock or shares as was included in the said new issue, if the company was incorporated before the 1st day of January, 1934, at the rate of seven and one-half per cent. per annum or, if the company was incorporated on or after that date, at the rate of nine per cent. per annum, and | ||
(iii) interest on such (if any) debentures or debenture stock (other than debentures or debenture stock issued to replace an equal amount of debentures or debenture stock issued before the expiration of the trade year which ended in the year ended on the 31st day of August, 1939) as were included in the said new issue, if the company was incorporated before the 1st day of January, 1934, at the rate of seven and one-half per cent. per annum or, if the company was incorporated on or after that date, at the rate of nine per cent. per annum.” | ||
(2) In computing under sub-section (3) of section 41 of the Finance Act, 1941 (No. 14 of 1941), (as amended by the foregoing sub-section of this section) the standard payments in respect of the stock or share capital or debentures or debenture stock referred to in that section as the new issue in any accounting period or part of an accounting period, the expression “fixed rate” wherever it occurs in the said sub-section (3) (as so amended) shall, in relation to dividends or interest on so much (whether a part or the whole) of the said new issue as was made after the 6th day of May, 1942, and before the end of the said accounting period or part of an accounting period, be construed and have effect— | ||
(a) if the said company was incorporated before the 1st day of January, 1934, as meaning whichever of the following rates is the lesser, that is to say, the fixed rate at which the dividends or interest (as the case may be) in relation to which the said expression is used are or is actually payable or the rate of seven and one-half per cent. per annum, or | ||
(b) if the said company was incorporated on or after the 1st day of January, 1934, as meaning whichever of the following rates is the lesser, that is to say, the fixed rate at which the dividends or interest (as the case may be) in relation to which the said expression is used are or is actually payable or the rate of nine per cent. per annum. |