Finance Act, 1958
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Restriction on relief for losses by repayment of tax in case of dividends paid out of accumulated profits. |
52.—(1) Where a person carries on a trade other than such a trade as is mentioned in subsection (1) of section 51 of this Act, and his income for any year of assessment includes a dividend (being a dividend which, on or after the 19th day of June, 1958, he becomes entitled to receive) the net amount of which would, if the trade were such a trade as is mentioned in that subsection, be required to any extent to be brought into account as a trading receipt which has not borne tax, then, in ascertaining whether any or what repayment of tax is to be made to that person under section 34 of the Income Tax Act, 1918, by reference to any loss sustained in the trade and the aggregate amount of his income for the said year of assessment, there shall be left out of account— | |
(a) the gross amount corresponding to so much of the said net amount as would have been required to be brought into account as aforesaid, and | ||
(b) any tax paid on the amount required to be left out of account under paragraph (a) of this subsection. | ||
(2) For the purposes of this section “person” includes any body of persons. |