Finance Act, 1969
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Dividends paid out of certain exempt profits. |
20.—(1) In this section “exempt profits” means any profits or gains which by virtue of section 18 are not chargeable to tax under Schedule D. | |
(2) Where a dividend is paid in part out of exempt profits and in part out of other profits, sections 456 and 457 of the Income Tax Act, 1967 , shall apply as if the dividend consisted of two dividends respectively paid out of exempt profits and out of other profits. | ||
(3) So much of any dividend as has been paid out of exempt profits shall not be regarded as income or profits for any purpose of the Income Tax Acts. | ||
(4) Section 458 of the Income Tax Act, 1967 , shall apply and have effect in relation to every warrant, cheque or order drawn or made by a company (within the meaning of that section) for the payment of a dividend payable wholly or in part out of exempt profits as if the statement referred to in that section were required to show, in addition to the particulars required to be given apart from this section, either (as the case may require)— | ||
(a) that the whole of the sum for which the warrant, cheque or order is drawn or made is a payment of a dividend out of exempt profits, or | ||
(b) that a part of such sum is a payment out of exempt profits and that a part (the gross amount of which, before any deduction in respect of income tax, is separately stated) of such sum is a payment out of other profits. |