CHAPTER 75:01 - Inland Revenue Division

Corporation Tax Act Mac 1
Vol. 1
FIFTH SCHEDULE
TAX EXEMPTIONS FOR APPROVED MORTGAGE COMPANIES AND
OTHER COMPANIES
Section 15
1. (1) Notwithstanding the provisions of Part I of this Act but subject to subparagraph
(2) and paragraph 1A(1), there shall be exempt from
corporation tax any income or profits of a company derived from the
business to which section 42(2)(b) to (e) of the Income Tax Act relates. Act No.11 of 1988
Ch.75:01
Amended by Act No.18 of 1989
(2) For the purposes of subparagraph (1), the Minister may by instrument
in writing declare a company to be an approved mortgage company where
that company has entered into an agreement with the Government
whereby the company agrees, in accordance with this Schedule and the
Housing Act and under the terms of the agreement -
Ch.33:01
(a) to finance by way of mortgage the purchase of newly
constructed houses;
(b) to finance by way of mortgage the repayment of loans granted
for the construction of houses; and
(c) to finance the construction of houses by providing loans under
loan agreements and by taking mortgages of the houses so constructed
upon completion of construction. Amended by Act No. 18 of 1989
(2A) Notwithstanding the termination of the agreement between a
company and the Government referred to in subparagraph (2), the
exemptions granted under this Schedule shall apply in respect of any
mortgages or loans which the Minister certifies were granted prior to the
date of termination. Amended by Act No. 18 of 1989
(3) Notwithstanding the provisions of paragraphs 1(1), 2, and 4(1) that relate
to the taxes with respect to which the profits of an approved mortgage
company or the shareholders or the debenture holders of an approved
mortgage company are exempt, the terms of the agreement mentioned in
sub-paragraph (2) may limit the taxes from which an approved mortgage
company or the shareholders or the debenture holders in the approved
mortgage company are exempt.
1A. (1) Where the Home Mortgage Bank has entered into an agreement with
the Government to buy mortgage loans from approved mortgage
companies, the Home Mortgage Bank is, subject to the terms of the
agreement, deemed for the purposes of section 42(2)(d) of the Income Tax
Act and paragraphs 1(1), 3(3) and 5 to be an approved mortgage company
BIR Mac Edition 91/01 Page 237