On 25/05/2013,
you requested for the version in force on 25/05/2013
incorporating all amendments published on or before 25/05/2013.
The closest version currently available is that of 18/04/2013.
13B.
—(1) Where a company derives income which is subject to tax or exempt from tax in accordance with section 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L (repealed), 43M (repealed), 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W, 43X, 43Y or 43Z, or the regulations made thereunder, the following provisions of this section shall have effect.
[1/82; 15/83; 31/86; 1/90; 20/91; 2/92; 28/92; 26/93; 1/98; 31/98; 37/2002; 21/2003; 49/2004; 34/2005; 7/2007; 53/2007]
(2) As soon as any amount of income of the company has been subject to tax at the rate of 10% (or other concessionary rate) or exempt from tax in accordance with section 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L (repealed), 43M (repealed), 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W, 43X, 43Y or 43Z, or the regulations made thereunder, the net amount of the income after deduction of the tax or the amount of the income exempted shall be credited to a special account (referred to in this section as the account) to be kept by the company for the purposes of this section.
[15/83; 1/90; 20/91; 2/92; 28/92; 26/93; 1/98; 31/98; 37/2002; 21/2003; 49/2004; 34/2005; 7/2007; 53/2007]
(3) Where the account is in credit at the date on which any dividends are paid by the company out of the net amount of the income credited to that account, an amount equal to those dividends or to that credit, whichever is the less, shall be debited to the account.
[15/83]
(4) So much of the amount of any dividends debited to the account as is received by a shareholder of the company shall, if the Comptroller is satisfied with the entries in the account, be exempt from tax in the hands of the shareholder.
(4A) Any dividends debited to the account shall be treated as having been distributed to the shareholders of the company or any particular class of the shareholders in accordance with the proportion of their shareholdings in the company.
[37/2002]
(5) Section 44 shall not apply to any dividends or part thereof which are exempt from tax under this section.
[1/90]
(6) Where an amount has been received by way of dividends from a company by a shareholder and the amount is exempt from tax under this section, if that shareholder is a company, any dividends paid by that company to its shareholders, to the extent that the Comptroller is satisfied that those dividends are paid out of that amount, shall be exempt from tax in the hands of those shareholders, and section 44 shall not apply to any such dividend or part thereof.
[37/2002]
(6A) Notwithstanding subsections (4) and (6), no dividend paid on any share of a preferential nature shall be exempt from tax under this section in the hands of the shareholder.
[21/2003]
(7) A company shall deliver to the Comptroller a copy of the account made up to any date specified by him whenever called upon to do so by notice in writing.
(8) Notwithstanding subsections (1) to (7), where it appears to the Comptroller that —
(a)
any income of a company which has been subject to tax at the rate of 10% (or such other concessionary rate) or exempt from tax as prescribed under section 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L (repealed), 43M (repealed), 43N, 43O, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W, 43X, 43Y or 43Z, or the regulations made thereunder; or
(b)
any dividend which has been exempted from tax in the hands of any shareholder,
ought not to have been so taxed or exempted, as the case may be, the Comptroller may, within the year of assessment or within 6 years (if the year of assessment is 2007 or a preceding year of assessment) or 4 years (if the year of assessment is 2008 or a subsequent year of assessment) after the expiration thereof —
(i)
make such assessment or additional assessment upon the company or any such shareholder as may be necessary in order to make good any loss of tax; or
(ii)
direct the company to debit the account with such amount as the circumstances require.
[15/83; 1/90; 20/91; 2/92; 28/92; 26/93; 11/94; 1/98; 31/98; 37/2002; 21/2003; 49/2004; 34/2005; 7/2007; 53/2007]
(9) This section shall not, in relation to any income of an insurance company which is subject to the concessionary rate of tax prescribed by regulations made under section 43C, apply to such part of the income ascertained under section 26(7) as is apportioned to the policyholders of the company in accordance with those regulations.
[28/92]