Clause 16

by deleting “33%” in subsection (1) and substituting “32%”;

by deleting subsection (11) and substituting the following subsection:“(11) Notwithstanding anything in this Act, where tax on any dividend paid in 1989 has been deducted at the rate of 33% —

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 32% 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 33% from such dividend and the amount deemed to have been so deducted under paragraph (a) shall be added to the balance on the 1st day of the year of assessment 1990 and deemed to be a part thereof.”; and

by deleting the words “or 43E” in subsection (12)(f)(i) and substituting the words “, 43E or 43F, or section 19B of the Economic Expansion Incentives (Relief from Income Tax) Act [Cap. 86]”.