CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 77

arrangements having effect under Section 50 of this Ordinance

shall not exceed the total income tax payable by him for that

year of assessment, less any tax payable by him under the

provisions of Section of this ordinance.

(5) In computing

amount of the income

77

(a) no deduction shall be allowed in respect of

foreign tax (whether in respect of the same or any other income);

(b) where the income tax chargeable depends on the

amount received in

Colony, the said amount shall be increased

by the appropriate amount of the foreign tax in respect of the

income;

(c) where the income includes

dividend and under

the arrangements foreign tax not chargeable directly or by

deduction in respect of the dividend is to be taken into

account in considering whether any, and if so what, credit is

to be given against income tax in respect of the dividend

amount of the income shall be increased by the amount of the

foreign tax not so chargeable which falla to be taken into

account in computing the amount of the credit;

but notwithstanding anything in the preceding provisions of this

subsection a deduction shall be allowed of any amount by

foreign tax in respect of the income exceeds the credit

therefor.

(6) Paragraphs (a) and (b) of the preceding subsection

(but not the remainder thereof) shall apply the computation of

total income for the purposes of determining the rate mentioned

in subsection (3) of this Section, and shall apply there to in

relation to all income in the case of which credit falls to be

gåven for foreign tax under arrangements for the time being

in force under Section 50 of this Ordinance.

(7) there

(a) the arrangements provide, in relation to

dividends of some classes, but not in relation to dividends of

other classes, that foreign tax not chargeable directly or

by deduction in respect of dividends is to be taken into

account in considering whether any, and if so, what, credit