(1) Section 4 of the Principal Act is hereby amended, with effect as on and from the 3rd day of December, 1997, in subsection (1) by the substitution for the definition of "standard credit rate" of the following definition:

"'standard credit rate' for a year of assessment means -

(a) for the year of assessment 1997-98 -

(i) 21 per cent where it has application in relation to a distribution made or treated as having been made by a company before the 3rd day of December, 1997, and

(ii) 11 per cent where it has application in relation to a distribution made or treated as having been made by a company on or after the 3rd day of December, 1997,

and

(b) for the year of assessment 1998-99, 11 per cent,

and, accordingly, 'standard credit rate per cent' for the year of assessment 1997-98 means 21 or 11, as the case may be, and for the year of assessment 1998-99 means 11;".

(2) Schedule 4 shall have effect for the purpose of supplementing subsection (1).