(1) Despite anything contained in the Income Tax Act the income of a society shall be wholly exempt from payment of any income tax, and any payment made by a borrower by way of interest on a loan from the society shall be an allowable deduction for purposes of income tax.
(2) Interest and dividends earned by members of a society on deposits and shares shall be free from income tax during the first 8 years of the coming into operation of this Act and such further periods as the Governor General may by order prescribe.