Relief in respect of United Kingdom Income Tax

(1) Any person who has paid, by deduction or otherwise, or is liable to pay tax, under this Act for any year of assessment on any part of his income and who proves to the satisfaction of the Commissioner that he has paid by deduction or otherwise or is liable to pay income tax in the United Kingdom for that year in respect of the same part of his income, shall be entitled to relief from tax under this Act paid or payable by him on that part of his income at a rate equal to the amount by which the rate of tax appropriate to his case under this Act exceeds half the appropriate rate for United Kingdom tax. (2) If, however, the rate of tax appropriate to his case under this Act exceeds the appropriate rate of United Kingdom tax he 45 shall be entitled only to relief at a rate equal to half the appropriate rate of United Kingdom tax: Provided that where in the case of any individual but for this proviso the amount of tax payable under this Act after allowance of any relief under sub- section (1) of this section, when added to the amount of income tax payable in the United Kingdom in respect of the same part of his income after allowance of such relief as is granted by section 27 of the Finance Act 1920, which amount is hereinafter referred to as “the net United Kingdom tax” would exceed the greater of the amounts of tax which, but for the reliefs aforesaid, would be payable under this Act and in United Kingdom respectively which amounts are hereinafter referred to respectively as “the gross Colonial tax” and “the gross United Kingdom tax”, the Commissioner may, if he is satisfied that special hardship would otherwise be caused, grant such additional relief from the tax payable under this Act as he may think fit up to an amount sufficient to reduce the net tax so payable to an amount which when added to the net United Kingdom tax, will be equivalent to the gross Colonial tax or the gross United Kingdom tax, whichever is the greater. (3) For the purposes of this section a certificate issued by or on behalf of the Commissioners of Inland Revenue in the United Kingdom shall be receivable in evidence to show what is the appropriate rate of United Kingdom tax or the net United Kingdom tax in any particular case. (4) For the purposes of this section, the expression “rate of tax”, when applied to tax paid or payable under this Act means the rate determined by dividing the amount of the tax paid or payable for any year before the deduction of the relief granted under this section by the amount of the income in respect of which the tax paid or payable under this Act has been charged for that year, except that where the income which is the subject of a claim to relief under this section is computed by reference to section 25 of this Act on an amount other than the ascertained amount of the actual profits, the rate of tax shall be determined by the Commissioner. 46