(1) In this section, "relieved income" means the income of a company -
(a) on which income tax was paid at a reduced rate by virtue of -
(i) section 395(1) of the Income Tax Act, 1967,
(ii) section 7 or 8 of the Finance (Miscellaneous Provisions) Act, 1956, or
(iii) section 32 of the Finance Act, 1960,
(b) on which income tax was borne by deduction at a reduced rate under -
(i) section 396(1) of the Income Tax Act, 1967, or
(ii) section 9 of the Finance (Miscellaneous Provisions) Act, 1956,
or
(c) which is franked investment income, which consists of a distribution made out of relieved income.
(2) [deleted]
(3) Where a distribution is made in part out of relieved income and in part out of other income, the distribution shall be treated as if it consisted of 2 distributions respectively made out of relieved income and out of other income.
(4) Any distribution, including part of a distribution treated under subsection (3) as a distribution, made out of relieved income shall, where the re
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