Section 35

Despite section 43(1) of the Income Tax Act 1947, the Minister may, subject to subsection (2), if the Minister is satisfied that it is expedient in the public interest to do so, by an endorsement to that effect on the approved foreign loan certificate, exempt from tax or authorise that tax at such concessionary rate as specified in the certificate be levied and paid upon any interest on an approved foreign loan payable to a foreign lender.

Where a company has contravened section 34 or any conditions imposed by the Minister under section 33(5), the amount which, but for subsection (1), would have been deductible by the company from the interest paid by it to the foreign lender under section 45 of the Income Tax Act 1947 is deemed to have been deducted from that interest and is a debt due from the company to the Government and recoverable in the manner provided by section 89 of the Income Tax Act 1947.

No action may be taken by the Comptroller to recover any debt under subsection (2) without the prior sanction of the Minister.[59