16. Amendment of section 110

Section 110 of the principal Act is amended by inserting after subsection (1B) the following subsection:

³(1C) Notwithstanding subsection (1), where tax on any dividend paid, credited or distributed during the basis year for the year of assessment 1994 has been deducted at the rate of thirty-four per cent, the tax to be set off under subsection (1)

shall be the sum deemed to be the tax deducted from such dividend under subsection 108(2C).´.