§ (1) Where an assurance company carrying on life assurance business or any company whose business consists mainly in the making of investments, and the principal part of whose income is derived therefrom, claims and proves to the satisfaction of the Special Commissioners that for any Income Tax year it has been charged to Income Tax by deduction or otherwise, and has not been so charged in respect of its profits in accordance with the rules under the first case in Section one hundred of the Income Tax Act, 1842, the company shall be entitled to repayment of so much of the tax paid by it as is equal to the amount of the tax on any sums disbursed as expenses of management (including commissions) for that year:
§ Provided that—
- (a) relief shall not be given under this Section so as to make the Income Tax paid by the company less than the tax which would have been paid if the profits of the company had been charged in accordance with the said rules; and
- (b)the amount of any fines, fees, casual profits, or profits arising from reversions in the case of an assurance company, and in the case of any other company the amount of any income or profits derived from sources not charged to Income Tax, shall be deducted from the amount treated as expenses of management for the year.
§ (2) Notice of any claim to the Special Commissioners under this Section together with the particulars thereof shall be given in writing to the surveyor of taxes for the district within twelve months after the expiration of the Income Tax year in respect of which the claim is made, and where the surveyor objects to such claim the Special Commissioners shall hear and determine the same in like manner as in the case of an appeal to them against an assessment under Schedule D, and Section fifty-nine 747 of the Taxes Management Act, 1880 (which relates to the statement of a case on a point of law) and any rules made for the purposes of that Section shall apply in the case of any such appeal.
§ (3) A company shall not be entitled to any relief under this Section in respect of any expenses as to which relief may be claimed or allowed under Section thirty-five of the Finance Act, 1894, or Section sixty-nine of the Finance (1909–10) Act, 1910, as extended by Section eight of the Finance Act, 1914, by which enactments relief is conferred in respect of the cost of maintenance, repairs, insurance, or management of land or houses.
§ Amendments made: In Sub-section (1), paragraph (b), leave out the words "casual profits." At the end of Subsection (1) insert "and
§ (c) in calculating profits arising from reversions, the company may set off against those profits any loss arising from reversions for any previous year during which this Section was in operation."—[Mr. Montagu.]
§ Clause, as Amended, ordered to stand part of the Bill.