Section 8 of the Finance Act, 1982, is hereby amended, as respects the year 1995-96 and subsequent years of assessment, by the substitution in the definition of "the specified rate" (inserted by the Finance Act, 1989) in subsection (1) of -
(a) "7 per cent." for "7.5 per cent." (inserted by the Finance Act, 1994) in both places where it occurs, and
(b) "11 per cent." for "11.5 per cent." (inserted by the Finance Act, 1994),
and the said definition, as so amended, is set out in the Table to this section.
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TABLE |
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"the specified rate", in relation to a preferential loan, means - (i) in a case where - (I) the interest which is paid on the preferential loan qualifies for relief under section 76(1)(c) or 496 of, or paragraph 1(2) of Part III of Schedule 6 to, the Income Tax Act, 1967, or (II) if no interest is paid on the preferential loan, the interest which would have been paid on that loan (if interest had been payable) would have so qualified, the rate of 7 per cent, per annum |