FINANCE ACT, 1027

815
the release and assignment of debts of the existing company
shall not, except in the case of debts due to banks or
to trade creditors apply to debts which were incurred
less than two years befove the proper time for making a
claim for exemption under this section.
(2) For the purposes of a claim for exemption under paragraph
(B) of subsection (1) of this section, a company which has, in
connection with a scheme of reconstruction or amalgamation,
issued any unissued share capital shall be treated as if it had
increased its nominal share capital.

(3) A company shall not be deemed to be a particular existing
company within the meaning of this section unless it is provided
by the memorandum of association of, or the letters patent or
Act incorporating, the transferee company that one of the bbjects
for which the company is established is the acquisition of the
undertaking of, or shares in, the existing company, or unless it
appears from the resolution, Act or other authority for the
increase of the capital of the transferee company that the in-
crease 1s authorised for the purpose of acquiring the undertaking
of. or shares in, the existing company.
(4) In a case where the undertakings of or shares in two or
more companies are to be acquired, the amount of the reduction
to be allowed under this section in respect of the stamp duty
chargeable in respect of the nominal share capital or the increase
of the capital of a company shall be computed separately in rela-
tion to each of those companies.

(5) Where a claim is made for exemption under this section, the
Commissioners of Inland Revenue may require the delivery to
them of a statutory declaration in such form as they may direct,
made in England by a solicitor of the Supreme Court or in Scot-
land by an enrolled law agent, and of such further evidence, if any.
as the Commissioners may reasonably require.

(6) If—

(a)

where any claim for exemption from duty under this section
has been allowed, it is subsequently found that any
declaration or other evidence furnished in support of the
claim was untrue in any material particular, or that the
conditions specified in subsection (1) of this section are not
fulfilled in the reconstruction or amalgamation as actuallv
carried out; or

where shares in the transferee company have been issued
to the existing company in consideration of the acquisition,
the existing company within a period of two years from the
date, as the case may be, of the registration or incorporation
or of the authority for the increase of the capital, of the
transferee company ceases, otherwise than in consequence
of reconstruction, amalgamation or liquidation, to be the
beneficial owner of the shares so issued to it: or

(b)