Cap. 123 Art. 60Set-off of tax in certain cases.

Any tax which a company had deducted or is entitled to deduct under article 59 from a dividend paid to a shareholder, from debenture interest payable to a debenture holder or from interest on any other loan payable to a creditor, and any tax applicable to the share to which any person is entitled in the income of a body of persons assessed under this Act, shall, when such dividend or interest or share is included in the chargeable income of such shareholder or person, be set off for the purposes of collection against the tax charged on that chargeable income:

Provided that, notwithstanding anything in this article or in the last preceding article but subject to the following proviso, where a company has deducted tax, the amount of tax actually deducted by a company from any dividend paid by the company to a shareholder shall be set off against the tax due from the recipient of such dividend, irrespective of whether in paying the dividend the company has made an under-deduction or an over-deduction or any adjustment of a previous under-deduction or over-deduction of tax, except where a company has recovered the amount of any under-deduction under the provisions of article 59(2)(b) in which case a set-off shall be allowed of the amount of tax actually deducted by the company and of the amount of tax recovered by the company under those provisions:

Provided further that no set-off as aforesaid shall be made unless the certificate referred to in article 59(5) or (7) is produced to the Commissioner and unless tax has actually been paid: Provided also that in no case shall any set-off be made in respect of -

(a) any tax which a company has deducted or is entitled to deduct from any dividend paid to any person who, in virtue of any exemption granted by or under any law, is not chargeable to tax thereon; and

(b) any tax charged on any body of persons under article 56(4), or under article 27(3) and (4) of the Income Tax Management Act.