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Standard profits of certain new companies.
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16.—Where—
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(a) a company (in this section referred to as the new company) applies in writing to the Revenue Commissioners to make an apportionment under this section, and
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(b) the new company satisfies the Revenue Commissioners—
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(i) that it was incorporated after the 31st day of August, 1939, to carry on a trade or business similar in character to, but smaller in scale than, the trade or business of a company (in this section referred to as the old company) which has been dissolved and which had one or more trade years, and
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(ii) that it does so carry on such trade or business, and
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(iii) that more than fifty per cent. of the ordinary issued capital of the new company is held by persons who held in the aggregate more than fifty per cent. of the ordinary issued capital of the old company, and
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(iv) that a substantial part of the organisation of the old company has been taken over by the new company, and
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(v) that the new company was incorporated not later than one month after the dissolution of the old company, and
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(c) the new company furnishes to the Revenue Commissioners such accounts, particulars and information as the Revenue Commissioners require for the purposes of the application,
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the following provisions shall have effect—
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(1) the Revenue Commissioners shall apportion to the new company an amount equal to so much of the profits of the old company for the trade year by reference to the profits of which the standard profits of the old company would have been computed if it had not been dissolved as the Revenue Commissioners consider appropriate to the trade or business carried on by the new company, and
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(2) the amount so apportioned to the new company shall, if the new company so desires be the standard profits of the new company in respect of every accounting period ending after the 1st day of January, 1941.
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