Page:Railways Act 1921 (ukpga 19210055 en).pdf/19

[Ch. 55.] the deficiency is to be apportioned, be deducted from one-half of the sum received by the company out of the said account the amount applied by that company for the payment of interest and dividends in respect of the said three years; and the deficiency shall be apportioned mongst the several companies in proportion to the amounts of the several residues so obtained.

After an amalgamation scheme 'comes into operation, any sums received out of the said account, and any amounts applied for the payment of interest or dividends, by a constituent or subsidiary company in the group to which the scheme relates, shall, for the purposes of this section, be treated as having been so received or applied by the amalgamated company formed by the scheme.

All assessments to income tax in respect of sums applied for the payment of interest or dividends, or in respect-of an apportioned share of the deficiency under this section, shall be made by the special commissioners of income tax; and the amount of any such assessment shall be paid, collected, and levied in like manner as any other assessment made by the special commissioners.

The railway companies to which this section applies are the railway companies of whose undertakings possession is retained under the, up to the end of the period of possession; that is to say, the period, ending on the fifteenth day of August, nineteen hundred and twenty-one, during which possession of those undertakings is under the said Act authorised to be retained by the Minister.

Allocation of compensation under railway regulations

12.–(1) Out of the first instalment of thirty million pounds referred to in the last preceding section—

(a) the sum of twenty-four million five hundred thousand pounds- shall be forthwith distributed amongst the companies to which the said section applies (other than the companies referred to in subsection (3) of this section) in proportion to the net receipts of those companies, respectively, during the year nineteen hundred and thirteen, covered by the first seven items in account No. 8 of the First Schedule to the, as already agreed for the purpose of the compensation accounts between the Government and 15