S.L. 123.216 Art. 6Election.             Cap. 372.

Notwithstanding the provisions of rule 5, an insurer may elect, in such manner and within such period as the Commissioner may determine, to spread the payment of the tax chargeable on any adoption gains determined pursuant to rule 5:

Provided that the payment of the tax chargeable on such adoption gains shall be spread equally over a maximum period of five

(5) consecutive years commencing from the adoption year of assessment and such period shall be referred to as the "maximum deferral period":

Provided further that this election shall be irrevocable, and the period over which the insurer elects to spread the payment of the tax chargeable on the adoption gains shall be referred to as the "chosen deferral period", which may not in any case, exceed the maximum deferral period:

Provided further that should an insurer, for any reason whatsoever, cease to be subject to tax in terms of these rules, the deferral of payment granted in terms of an election provided for in accordance with this rule shall be immediately discontinued and any outstanding balance shall be deemed to have become due by the tax settlement date of the last year of assessment relative to such accounting period within which the insurer is subject to tax under these rules and the provisions of article 42 of the Income Tax

Management Act shall apply mutatis mutandis:

Provided further that an insurer shall notify the Commissioner in such manner and within such period as the Commissioner may determine, that such election no longer applies.