(1) This section shall apply where any person (in this section referred to as "the recipient") receives an amount treated as a distribution by virtue of -
(a) paragraph (c) or (d) of section 130(2),
(b) section 131, or
and, in this section, a distribution within paragraph (a), (b) or (c) is referred to as a "bonus issue"
(2) Subject to subsection (5), where the recipient is entitled by reason of -
(a) any exemption from tax,
(b) the setting-off of losses against profits or income, or
(c) the payment of interest,
to recover tax in respect of any distribution which the recipient has received, no account shall be taken, for the purposes of any such exemption, set-off or payment of interest, of any bonus issue which the recipient has received.
(3) Subject to subsection (5), a bonus issue shall be treated as not being franked investment income within the meaning of section 156.
(4) [deleted]
(5) Nothing in subsections (2) and (3) shall affect the proportion (if any) o
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