Investment Incentives Act · s 31

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31.
Exemption of approved foreign loan interest from tax
(1)
Subject to subsection (3) of this section the interest on an approved foreign loan payable to a foreign lender may be exempt from tax as the Board deems fit provided that the
Collector is satisfied that such exemption does not result in an increase in liability to tax by the foreign lender in his country of residence.
(2)
Where such exemption applies the company concerned upon paying such interest shall not deduct therefrom the tax which would otherwise have been deductible under section 37 of the Income Tax Act but shall forthwith submit a statement to the Collector of the amount which would otherwise have been deductible by such company under that section.
Cap. 35.

Investment Incentives 35
(3)
Where a company has contravened section 30 or any conditions imposed by the Board under subsection (4) of section 39, the amount which, but for subsection (2), would have been deductible by such company from the interest paid by it to the foreign lender under section 37 of the Income Tax Act shall be deemed to have been deducted from such interest and shall be a debt due from such company to the Government and be recoverable in the manner provided by section 74 of the Income
Tax Act.
(4)
No action shall be taken by the Collector to recover any debt under subsection (3) without the prior sanction of the
Board.

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s 31Exemption of approved foreign loan interest from tax

(1)

Subject to subsection (3) of this section the interest on an approved foreign loan payable to a foreign lender may be exempt from tax as the Board deems fit provided that the

Collector is satisfied that such exemption does not result in an increase in liability to tax by the foreign lender in his country of residence.

(2)

Where such exemption applies the company concerned upon paying such interest shall not deduct therefrom the tax which would otherwise have been deductible under section 37 of the Income Tax Act but shall forthwith submit a statement to the Collector of the amount which would otherwise have been deductible by such company under that section.

Cap. 35.

Investment Incentives 35

(3)

Where a company has contravened section 30 or any conditions imposed by the Board under subsection (4) of section 39, the amount which, but for subsection (2), would have been deductible by such company from the interest paid by it to the foreign lender under section 37 of the Income Tax Act shall be deemed to have been deducted from such interest and shall be a debt due from such company to the Government and be recoverable in the manner provided by section 74 of the Income

Tax Act.

(4)

No action shall be taken by the Collector to recover any debt under subsection (3) without the prior sanction of the

Board.