Finance Act, 1975
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Patent royalties: provisions supplemental to section 34 of Finance Act, 1973. |
30.—(1) (a) Where a dividend is paid in part out of profits consisting of income disregarded by virtue of section 34 (2) of the Finance Act, 1973 (in this section referred to as disregarded income), and in part out of other profits, sections 456 and 457 of the Income Tax Act, 1967 , shall apply as if the dividend consisted of two dividends of which one is paid out of profits consisting of disregarded income and the other is paid out of other profits, | |
(b) so much of any dividend as is paid out of disregarded income shall not be regarded as income or profits for any purpose of the Income Tax Acts or of the enactments relating to corporation profits tax, | ||
(c) in relation to every warrant, cheque or order drawn or made by a company for the payment of a dividend payable wholly or in part out of disregarded income, section 458 of the Income Tax Act, 1967 , shall apply to the company so that the statement required by that section shall show, in addition to the particulars required to be given apart from this section, either (as the case may require)— | ||
(i) that the whole of the sum for which the warrant, cheque or order is drawn or made is a payment of a dividend out of disregarded income, or | ||
(ii) that a part of such sum is a payment out of disregarded income and that a part (the gross amount of which, before any deduction in respect of income tax, is separately stated) of such sum is a payment out of other income. | ||
(2) Where under section 456 of the Income Tax Act, 1967 , a body corporate is entitled to deduct tax from any dividend and the profits of the body corporate include a dividend all or part of which is not regarded as income by virtue of subsection (1) (b), so much of any dividend included in the profits of the body corporate as is not regarded as income shall be deemed for the purposes of this section to be profits representing disregarded income. |