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.