524. Spreading patent royalties over several years.

A person who makes a claim is entitled to a tax reduction for a tax year1 in which he receives a payment of a royalty or other sum if:


    (1)     the payment is in respect of the use of a patent;


    (2)     the use of the patent has extended over a period of two years or more; and


    (3)     the payment is one from which a sum representing income tax is required2 to be deducted3.

The amount of the tax reduction is the difference between the amount of income tax payable by him in respect of the payment, and the