Clause 11

by deleting the words “the same proportions as such shareholders were entitled to payment of the dividends giving rise to the debit” in the penultimate and last lines of subsection (6)(d) and substituting the words “accordance with the proportion of their shareholdings in the shipping enterprise”;

by deleting paragraphs (f) and (g) of subsection (6) and substituting the following paragraphs:“(f)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; and

notwithstanding paragraphs (c) and (f) —

no dividend paid on any share of a preferential nature shall be exempt from tax in the hands of the shareholder; and

any dividend paid on any share of a preferential nature shall be deemed as interest income of the shareholder if the dividend is paid by a company —

which has not been subjected to the provisions of section 44 in force immediately before 1st January 2003; or (B)which before 1st January 2003 had been subjected to the provisions of section 44 in force immediately before that date and the dividend is paid on or after —

any dividend paid on any share of a preferential nature shall be deemed as interest expense of the company if the company so elects.”;

by deleting the words “(including a dividend paid by a holding company to which subsection (6)(f) applies)” in subsection (8)(b); and (d)by deleting the definition of “holding company” in subsection (16).