s 37 Exemption from income tax
(1) Where an abatement is given to a company under section 36 for a year of assessment, so much of the statutory income of the company from the business of that company as is equal to the amount of the abatement shall be exempt from tax under the principal Act for that year of assessment. (2) Where, by reason of an insufficiency or absence of statutory income of a company from a business of the company for the basis period for a year of assessment, effect cannot be given or cannot be given in full to the abatement to which the company is entitled under section 36 for that year in relation to the source consisting of that business, then, notwithstanding subsection (1) and subsection 36(1), so much of the abatement under paragraph 36(2)(b) as cannot be given for that year shall be deemed to be an abatement to be given to the company under this section for the first subsequent year of assessment for the basis period for which there is statutory income from that business, and so on for subsequent years of assessment until the company has received the whole of the abatement to which it is so entitled. (3) Where any income is exempt from tax by virtue of subsection (1), section 23 shall apply to that income (with any necessary modifications) as it applies to income exempt under section 22.