Clause 52

by deleting the comma at the end of paragraph (b) of subsection (1) and substituting the word “; or”, and by inserting immediately thereafter the following paragraph:“(c)which a person has deducted from any payment under section 45F in respect of income accrued to or derived by any person who has made an option under section 43(3B),”;

by inserting, immediately after subsection (1), the following subsection:“(1A) For the purpose of subsection (1), the amount of tax deducted from a dividend under section 44(1) to be set-off for the purpose of collection against the tax charged on the chargeable income of any person shall not exceed —

the actual amount of tax deducted from the dividend received by that person; or

the amount of tax to be deducted from the dividend in accordance with the proportion of his shareholding in the company,whichever is the lower.”;

by deleting subsections (2) and (3) and substituting the following subsections:“(2) Notwithstanding subsection (1), where the tax on any dividend paid in the year 2002 has been deducted at the rate of 24.5%, the tax to be set-off under subsection (1) shall be the sum deemed to be the tax deducted from such dividend under section 44A(4).(3) Notwithstanding subsection (1), if any amount of the charge referred to in section 44(4) or (5A), or any amount of tax payable referred to in section 44(4), (5A) or (7) is not paid within 14 days from the date of payment of any dividend to which the charge or tax relates or by 31st December of the year in which the dividend is paid, whichever is the later, no set-off against tax under subsection (1) shall be allowed in respect of the whole of the dividend.”; and

by deleting the words “section 44” in the last line of subsection (6) and substituting the words “sections 44 and 44A”.