Income Tax Act, 1967.

Deduction for corporation, profits tax.

64.—(1) Where any company has paid corporation profits tax in respect of any accounting period ending on or after the 1st day of April, 1966, the amount so paid shall, in computing for purposes of income tax the profits or gains of the company, be allowed to be deducted as an expense incurred in that accounting period:

Provided that there shall be disregarded for the purposes of this subsection so much of the corporation profits tax paid in respect of any such accounting period which began before the 1st day of April, 1966, as is referable to profits apportioned under section 21 (2) of the Finance Act, 1966 , to the part of the accounting period before that day.

(2) Where any company has received repayment of any amount previously paid by it by way of corporation profits tax, the amount repaid shall be treated as profit for the year in which the repayment is received but this subsection shall not apply save where there has been an allowance of the deduction of an amount as an expense in computing profits or gains for purposes of income tax.

(3) Where in any year of assessment the profits or gains from which a deduction may be made under this section come into computation, but owing to the time at which the amount of the corporation profits tax became ascertained it was impracticable to give effect to the deduction when assessing income tax, the amount by which that tax would have been reduced if effect had been given to the deduction shall be deducted from the amount payable for corporation profits tax or, if there is no corporation profits tax, shall be repaid to the company.