38. Amendment of section 173 of the principal enactment

“For the purposes of this paragraph “income tax”:—

(A)

in relation to a company for any year of assessment shall not include tax payable by that company, under paragraph (b)

of subsection (1) of section 61, for that year of assesssment ;

(B)

in relation to any person, for any year of assessment means, the income tax which would have been payable by such person for the year preceding that year of assessment (hereinafter referred to as the “preceding year”) had any profits and income, other than the net annual value of a residence and any subsidy exempt from income tax under this Act, which were exempt from income tax, under this Act or any other written law and in respect of which such exemption ceased in such preceding year, been taken into account in computing the assessable income of that person for that year of assessment;”;

“(iii)

the Commissioner-General may reduce or waive any penalty payable under this section, if it appears to the Commissioner-General that such reduction or waiver is just and equitable in all the circumstances ;

2005, and which remained unpaid as at

October 1, 2005, if the entirety of such tax is paid in accordance with a scheme agreed to on or before December 31, 2007, with him in that behalf, within a period of not more than three years succeeding the date of such agreement. Where any such scheme so agreed to is not adhered to, the Commissioner-General shall, notwithstanding the provisions of the preceding paragraph, not reduce or waive such penalty.”.