On 20/06/2013,
you requested for the version in force on 20/06/2013
incorporating all amendments published on or before 20/06/2013.
The closest version currently available is that of 30/04/1996.
97Q.
—(1) As soon as any amount of qualifying income has become exempt from tax under section 97P, that amount shall be credited to an account to be kept by the overseas enterprise for the purposes of this section.
(2) Where that account is in credit at the date on which any dividends are paid by the overseas enterprise out of income which has been exempted, an amount equal to those dividends or to that credit, whichever is the less, shall be debited to the account.
(3) So much of the amount of any dividends so debited to that account as is received by a shareholder of the overseas enterprise shall, if the Comptroller is satisfied with the entries in the account, be exempt from tax in the hands of the shareholder.
(4) Notwithstanding subsections (3) and (9), where any dividend is paid on any share of a preferential nature, it shall not be so exempt in the hands of the shareholder.
(5) The overseas enterprise shall deliver to the Comptroller a copy of that account, made up to a date specified by him, whenever called upon to do so by notice in writing sent by him to its registered office, until such time as he is satisfied that there is no further need for maintaining the account.
(6) Notwithstanding section 97P and subsections (1) to (5), where it appears to the Comptroller that —
(a)
any amount of exempted income of an overseas enterprise; or
(b)
any dividend exempted in the hands of any shareholder, including any dividend paid by a holding company to which subsection (9) applies,
ought not to have been exempted by reason of a direction under section 97L, having been made with respect to the overseas enterprise, after any income of that enterprise has been exempted under the provisions of this Act or the revocation under section 99 of a certificate issued to the overseas enterprise, the Comptroller may, subject to section 73 of the Income Tax Act [Cap. 134] —
(i)
make such assessment or additional assessment upon the overseas enterprise or any such shareholders as may appear to be necessary in order to counteract any profit or income obtained from any such amount which ought not to have been exempted; or
(ii)
direct the overseas enterprise to debit its account, kept in accordance with subsection (1), with such amount as the circumstances require.
[1/95]
(7) Parts XVII and XVIII of the Income Tax Act (relating to objections and appeals) and any regulations made thereunder shall apply, with the necessary modifications, to any direction given under subsection (6) as if it were a notice of assessment given under those provisions.
(8) Section 44 of the Income Tax Act shall not apply in respect of any dividend or part thereof which is debited to the account required to be kept for the purposes of this section.
(9) Where an amount has been received by way of dividend from an overseas enterprise by a shareholder and the amount is exempt from tax under subsections (1) to (8), if that shareholder is a company (referred to in this section as the holding company) which holds, at the time any dividend is declared, the beneficial interest in all the issued shares of the overseas enterprise (or in not less than such proportion of those shares as the Minister may approve), any dividends paid by the holding 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 of the Income Tax Act shall not apply in respect of any dividend or part thereof so exempt.