Deduction of tax from dividends of companies

(1) Every company shall upon payment of a dividend, whether tax is therefrom or not, furnish such shareholder with a certificate setting out the amount of the dividend paid to that shareholder and the amount of tax which the company has deducted or is entitled to deduct in respect of that dividend and also, where the tax paid or payable by the company is affected by double taxation relief, the rate, hereinafter in this Act referred to as “the net colonial rate”, of the tax paid or payable by the company after taking double taxation relief. (2) In this section the expression “double taxation relief” means any credit for foreign income tax which is allowable 33 against income tax chargeable under this Act by virtue of arrangements having effect under section 50 of this Act, and any relief allowable under section 46 or section 47 of this act, including any credit or relief which has been taken into account in determining the net colonial rate applicable to any dividends received by the company.