Finance (Taxation of Profits of Certain Mines) Act, 1974
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Exploration expenditure incurred by certain bodies corporate. |
4.—(1) Where exploration expenditure, in respect of which an allowance may be claimed by virtue of section 2 or section 3, is or has been incurred by a body corporate (hereinafter in this section referred to as the exploration company) and— | |
(a) another body corporate is, or is deemed to be, a wholly-owned subsidiary of the exploration company, or | ||
(b) the exploration company is, or is deemed to be, a wholly-owned subsidiary of another body corporate, | ||
the expenditure or so much of it as the exploration company specifies— | ||
(i) in the case referred to in paragraph (a) may, at the election of the exploration company, be deemed to have been incurred by such other body corporate (being a body corporate which is, or is deemed to be, a wholly-owned subsidiary of the exploration company) as the exploration company specifies, | ||
(ii) in the case referred to in paragraph (b) may, at the election of the exploration company, be deemed to have been incurred by the body corporate (hereinafter referred to as the parent body) of which the exploration company was, at the time the expenditure was incurred, a wholly-owned subsidiary or by such other body corporate (being a body corporate which is, or is deemed to be, a wholly-owned subsidiary of the parent body) as the exploration company specifies, | ||
and in a case where the said expenditure was incurred on a date prior to the incorporation of the body corporate so specified, the provisions of this Act shall apply, in relation to the granting of any allowance in respect of such expenditure, as if the said body corporate had been in existence at the time the expenditure was incurred and had incurred the expenditure at that time: | ||
Provided that— | ||
(i) the same expenditure shall not be taken into account in relation to more than one trade by virtue of this section, and | ||
(ii) a deduction or allowance shall not be granted in respect of the same expenditure both by virtue of this section and under some other provision of the Income Tax Acts or the Acts relating to corporation profits tax. | ||
(2) A body corporate shall, for the purposes of subsection (1), be deemed to be a wholly-owned subsidiary of another body corporate if and so long as all of its ordinary share capital is owned by that other body corporate whether directly or through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate: | ||
Provided that where part of the ordinary share capital of any body corporate is held by a Minister of State and the remainder of the ordinary share capital of that body corporate is held by another body corporate, the first-mentioned body corporate shall be deemed, for purposes of subsection (1), to be a wholly-owned subsidiary of the last-mentioned body corporate. | ||
(3) The provisions of Part II of the Fifth Schedule to the Finance Act, 1973 , shall apply for the purpose of determining the amount of ordinary share capital held in a body corporate through other bodies corporate. |