Finance (Profits of Certain Mines) (Temporary Relief From Taxation) Act, 1956
|
Application to existing mines. |
11.—(1) In this section— | |
“existing mine” means a mine in so far only as existing mining operations are carried on therein; | ||
“the relevant years of assessment” means the years of assessment for the purposes of income tax beginning on or after the 6th day of April, 1956; | ||
“the relevant accounting periods” means the accounting periods, for the purposes of corporation profits tax, beginning on or after the 6th day of April, 1956, and the parts subsequent to the 5th day of April, 1956, of accounting periods, for the purposes of corporation profits tax, current on the 6th day of April, 1956. | ||
(2) Subject to the subsequent subsections of this section, for the relevant years of assessment and for the relevant accounting periods the foregoing provisions of this Act shall, with any necessary modifications, apply in the case of profits (hereinafter in this section referred to as the said profits) derived by a company (hereinafter in this section referred to as the established company), incorporated in the State prior to the 1st day of January, 1956, and resident therein for the purposes of income tax, from the working of an existing mine, as those provisions apply to profits derived from the working of a qualifying mine, and for the purpose of applying those provisions in any such case— | ||
(a) the day on which the established company commenced to carry on the trade of working the existing mine shall be taken to be the commencement day, and | ||
(b) the liability of the established company to income tax for the relevant years of assessment and to corporation profits tax for the relevant accounting periods shall be computed and dealt with as if those provisions had been in force on the day so taken and had been applicable to the said profits at all material times up to the 5th day of April, 1956. | ||
(3) Nothing in this section shall operate to reduce the amount of income tax payable by the established company for any year of assessment prior to the relevant years of assessment or to reduce the amount of corporation profits tax payable by the established company for any period prior to the relevant accounting periods. | ||
(4) (a) There shall be excluded from the application of section 7 of this Act any dividend paid by the established company out of profits of the existing mine as respects which the dividend period is a period prior to the 6th day of April, 1956, and, in the case of any such dividend as respects which the dividend period consists of a part prior to the 6th day of April, 1956, and a part subsequent to the 5th day of April, 1956, there shall be excluded from the application of that section such part of the dividend as is referable to the part of the dividend period prior to the 6th day of April, 1956, but the foregoing provisions of this paragraph are without prejudice to the entitlement of the established company to deduct income tax from any such dividend or any such part of a dividend. | ||
(b) In paragraph (a) of this subsection “dividend period” means the period out of profits of which a dividend is paid. | ||
(5) The necessary apportionments shall be made for the purpose of giving effect to this section as respects corporation profits tax in the case of accounting periods beginning before the 6th day of April, 1956, and ending on or after that day, and any such apportionment shall be made in proportion to the respective lengths of the part of the accounting period prior to the 6th day of April, 1956, and the part thereof subsequent to the 5th day of April, 1956. |