316 
SECRETARIAL PRACTICE 
where any such exemption has been allowed in connection 
with the acquisition by the transferee company of shares in 
another company, the transferee company within a period 
of two years from the date of its registration or incorpora- 
tion or of the authority for the increase of its capital, as the 
case may be, ceases, otherwise than in consequence of 
reconstruction, amalgamation or liquidation, to be the 
beneficial owner of the shares so acquired; 
the exemption shall be deemed not to have been allowed, and an 
amount equal to the duty remitted shall become payable forth- 
with, and shall be recoverable from the transferee company as a, 
debt due to His Majesty, together with interest thereon at the rate 
of five per cent. per annum in the case of duty remitted under 
paragraph (A) of subsection (1) of this section from the date of the 
registration or incorporation of the transferee company or the 
increase of its capital, as the case. may be, and in the case of duty 
remitted under paragraph (B) of the said subsection from the date 
on which it would have become chargeable if this Act had not 
passed. 
(c) 
(7) If in the case of any scheme of reconstruction or amalgama- 
tion the Commissioners of Inland Revenue are satisfied that at 
the proper time for making a claim for exemption from duty under 
subsection (1) of this section there were in existence all the neces- 
sary conditions for such exemption other than the condition that 
not less than ninety per cent. of the issued share capital of the 
existing company would be acquired by the transferee company, 
the Commissioners may, if it is proved to their satisfaction that not 
less than ninety per cent. of the issued capital of the existing 
company has under the scheme been acquired within a period of 
six months from the earlier of the two following dates, that is to 
say— 
(2) the last day of the period of one month after the first allot- 
ment of shares made for the purposes of the acquisition; or 
the date on which an invitation was issued to the share- 
holders of the existing company to accept shares in the 
transferee company; 
and on production of the instruments on which the duty paid has 
been impressed, direct repayment to be made of such an amount 
of duty as would have been remitted if the said condition had been 
originally fulfilled. 
(8) In this section, unless the context otherwise requires— 
References to the undertaking of an existing company include 
references to a part of the undertaking of an existing com- 
pany: 
The expression ‘shares’ includes stoc.