43. Revision in tax rate

Notwithstanding any other provision of this Part, where a dividend is paid or distributed with or without deduction of tax under this Part, and there is a revision in the rate of tax for companies for any year of assessment (in this section referred to as the “revised rate”), the amount of the dividend received by the shareholder shall be deemed to be a dividend of such gross amount as determined in accordance with the formula—

1

x

B

(1-A)

where

A is the revised rate applicable to the company at the time of payment or distribution of dividend;

B is the amount in fact paid or where section 41

applies and the dividend consists of property other than money, the amount of the market value of that property at the time of distribution of the dividend, and a sum equal to the difference between that gross amount and the amount in B in the above formula shall be deemed to have been deducted from the dividend as tax.

Finance 47