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Relief from tax.
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386.—(1) The net income tax, for the year of assessment within which falls the commencement day (hereafter in this Chapter referred to as the first year), shall not be payable.
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(2) The net income tax, for each of the three years of assessment (the last of which is hereafter in this Chapter referred to as the fourth year) next following the first year, shall not be payable.
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(3) (a) The net income tax, for the year of assessment (hereafter in this Chapter referred to as the fifth year) next following the fourth year, to the extent to which it exceeds the appropriate sum, shall not be payable.
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(b) In paragraph (a) of this subsection “the appropriate sum” means one-half of the sum which bears the same proportion to the net income tax for the fifth year as the number of days in the period beginning on the commencement day and ending on the 5th day of April in the first year bears to the total number of days in the first year.
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(4) (a) Subsection (3) shall be subject to the proviso that, where the company ceases permanently within the fifth year to carry on the trade of working the mine, then—
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(i) if the cessation occurs before or on the last day of the period of forty-eight months beginning on the commencement day, the net income tax for the fifth year shall not be payable, and
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(ii) if the cessation occurs after the expiration of that period, so much of the net income tax for the fifth year as exceeds the appropriate sum shall not be payable.
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(b) In paragraph (a) (ii) of this subsection “the appropriate sum” means one-half of the sum which bears the same proportion to the net income tax for the fifth year as the number of days, in the period beginning on the day next following the last day of the period of forty-eight months which begins on the commencement day and ending on the day of the cessation, bears to the number of days in the period beginning on the first day of the fifth year and ending on the day of the cessation.
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(5) One-half of the net income tax for each of the three years of assessment (the last of which is hereafter in this Chapter referred to as the eighth year) next following the fifth year shall not be payable.
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(6) (a) So much of the net income tax, for the year of assessment (hereafter in this Chapter referred to as the ninth year) next following the eighth year, as is equal to the appropriate sum shall not be payable.
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(b) In paragraph (a) of this subsection “the appropriate sum” means one-half of the sum which bears the same proportion to the net income tax for the ninth year as the number of days in the period beginning on the 6th day of April in the first year and ending on the day immediately preceding the commencement day bears to the total number of days in the first year.
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(7) (a) Subsection (6) shall be subject to the proviso that, where the company ceases permanently within the ninth year to carry on the trade of working the mine, then—
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(i) if the cessation occurs before or on the last day of the period of ninety-six months beginning on the commencement day, one-half of the net income tax for the ninth year shall not be payable, and
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(ii) if the cessation occurs after the expiration of that period, so much of the net income tax for the ninth year as is equal to the appropriate sum shall not be payable.
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(b) In paragraph (a) (ii) of this subsection “the appropriate sum” means one-half of the sum which bears the same proportion to the net income tax for the ninth year as the number of days, in the period beginning on the 6th day of April in the ninth year and ending on the last day of the period of ninety-six months beginning on the commencement day, bears to the number of days in the period beginning on the 6th day of April in the ninth year and ending on the date of the cessation.
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(8) The income tax on so much of the amount of the profits, as is equal to the total amount of any such payments by the company out of the profits as are referred to in section 385, shall, notwithstanding anything contained in the foregoing subsections of this section, be payable in full.
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