Clause 23

Section 42 of the principal Act is amended by deleting subsections (4) and (5) and substituting the following subsections: “(4) Notwithstanding Part B of the Second Schedule, where the effective rate of tax of a person other than an individual determined by dividing the tax chargeable on his chargeable income by the amount of that income exceeds the effective rate of tax for companies as determined under subsection (5), the rate of tax applicable to that person on every dollar of his chargeable income shall be the effective rate of tax for companies as so determined. (5) For the purposes of subsection (4), the effective rate of tax for companies shall be determined in accordance with the formula where Ais the tax chargeable on the chargeable income of the person for the year of assessment calculated in accordance with section 43(1D) as if the person is a company; and Bis the chargeable income of the person for the year of assessment.”.