(1) Subject to this section, where in any year of income a resident individual makes payments by way of subscription for shares in any society registered under the Co-operative Societies Act or incorporated under the Building Societies Act there is allowed a deduction for such payments up to a limit of $5,000.
(Amended by Act 14 of 2003Act 14 of 2003 applies in respect of income year 2002. See section 2 of Act 14 of 2003.)
(2) Where a deduction has been allowed under this section and the shares to which such deduction relates are disposed of within 5 years from the date of subscription therefor, the person shall cease to be entitled to the deductions previously granted and the Comptroller shall amend the assessment of the relevant year accordingly.
(3) For the purposes of this section where shares are disposed of within 5 years of the date of subscription—
(a) every individual to whom a deduction has been granted shall inform the Comptroller of such disposal within one month of the date of disposal; and
(b) every co-operative society and building society shall furnish to the Comptroller at the end of each quarter a list of such disposals showing—
(i) the name and address of the former owner,
(ii) the number of shares disposed of,
(iii) the dates of acquisition and disposal.