s 47 Exemption from income tax
47.—(1) Subject to subsection (2), where for any year of assessment a normal investment allowance account of a company is in credit and the company has for that year of assessment any chargeable normal income —(a) an amount of the chargeable normal income, not exceeding the credit in the normal investment allowance account, is exempt from tax and the normal investment allowance account is to be debited with such amount; and (b) any remaining balance in the normal investment allowance account is to be carried forward to be used by the company in the first subsequent year of assessment when the company has chargeable normal income, and so on for subsequent years of assessment until the credit in the normal investment allowance account has been fully used. (2) Where, for any year of assessment, a company has any chargeable concessionary income and the normal investment allowance account is in credit, the company may elect for any amount of the chargeable concessionary income, not exceeding the credit in the normal investment allowance account, to be exempt from tax and the normal investment allowance account to be debited with such amount. (3) A company must make the election under subsection (2) for any year of assessment at the time of lodgment of the return of income for that year of assessment, except that the election for the year of assessment 1994 must be made before 1 April 1995. (4) Where, for any year of assessment, a concessionary investment allowance account of a company is in credit and the company has, for that year of assessment any chargeable concessionary income —(a) an amount of the chargeable concessionary income, not exceeding the credit in the concessionary investment allowance account, is exempt from tax and the concessionary investment allowance account is to be debited with such amount; and (b) any remaining balance in the concessionary investment allowance account is to be carried forward to be used by the company in the first subsequent year of assessment when the company has chargeable concessionary income, and so on for subsequent years of assessment until the credit in the concessionary investment allowance account has been fully used. (5) Any amount of chargeable normal income of a company debited from the normal investment allowance account under section 45(7)(d) or any amount of chargeable concessionary income of a company debited from the concessionary investment allowance account under section 45(8)(d) or (9)(a) is exempt from tax.[71