Cap. 123 Art. 94Operation of the flat-rateforeigntax credit.

(1) Where the flat-rate foreign tax credit is due in respect of the income or gains referred to in article 92, it shall be added to the said income or gains. The aggregate sum so obtained shall be the amount that is chargeable to tax.

(2) For a year of assessment in respect of the income computed in accordance with the provisions of sub-article (1), the amount of tax payable under this Act shall be reduced by the amount of the flat-rate foreign tax credit due in respect of that income: Provided that where the amount of the flat-rate foreign tax credit exceeds eighty-five per cent of the tax payable computed by taking the tax payable on those profits which are to be allocated to the foreign income account and deducting therefrom any foreign tax set-off under the double taxation relief, Commonwealth income tax relief and unilateral relief provisions, the amount of such exceeds shall not be available for set-off or refund for any purposes of the Income Tax Acts.

(3) The provisions of article 77(8), (9) and (10) and of article 78 shall apply in relation to the flat-rate foreign mutatis mutandis tax credit as they apply to double taxation relief.