Clause 12

by deleting “40%” in subsection (1) and substituting “33%”; and

by inserting, immediately after subsection (6), the following subsection:“(6A) Notwithstanding anything in this Act, where tax on any dividend paid in 1986 has been deducted at the rate of 40% —

the amount of such dividend received by a shareholder shall be deemed to have been paid without deduction of tax and to be a dividend of such a gross amount as after deduction of tax at the rate of 33% would be equal to the net amount paid; and a sum equal to the difference between such gross amount and the net amount paid shall be deemed to have been deducted from the dividend as tax; and

the difference between the amount of the tax deducted at 40% from such dividend and the amount deemed to have been so deducted under paragraph (a) shall be carried forward as a balance in accordance with subsection (5).”.