77. Exemption of approved foreign loan interest from tax

Notwithstanding section 37 of the Income Tax Act, the Minister may, subject to subsection (2), if he is satisfied that it is expedient in the public interest to do so, by an endorsement to that effect on the approved foreign loan certificate, exempt from tax any interest on an approved foreign loan payable to a foreign lender.

Where a company has contravened section 76 or any conditions imposed by the Minister under subsection (4) of section 75, the amount which, but for subsection (1), would have been deductible by the 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 that interest and shall be a debt due from the company to the Government and be recoverable in the manner provided by section 76 of the Income Tax Act.

No action shall be taken by the Collector to recover any debt under subsection (2) without the prior sanction of the Minister.