SECTION PART I.- PRELIMINARY 1. Short title 2 ... - Lexadin

1970 No. 22
business or the transfer of its management to Nigeria and any asset
employed in that trade or business is so sold or transferred, then, if the
Board is satisfied that one of those companies has control over the other
or that both companies are controlled by some other person or are
members of a recognised group of companies, the provisions set out in
subsection (2) of this section shall have effect.
(2) In a case to which subsection (1) of this section applies, the Board
may in its discretion-
(a) if, on or before the date on which the trade or business is so
sold or transferred, the first sale of or bulk disposal of chargeable
oil by or on behalf of the company selling or transferring the
trade or business has occurred, but the first sale of or bulk
disposal of chargeable oil by or on behalf of the Nigerian
company acquiring that trade or business has not occurred -
(i) direct that the first accounting period of the Nigerian
company shall be the period of twelve months
commencing on the date on which the sale or transfer of
the trade or business takes place, or commencing on such
date within the calendar month in which the sale or
transfer takes place as may be selected by the Nigerian
company with the approval of the Board, and
(ii) for the purposes of subsection (2)(a)(i) of this section,
an accounting period as respects the Nigerian company
shall be a period of twelve months commencing on the
date on which the sale or transfer of the trade or business
to the Nigerian company takes place, or commencing on
such date within the calendar month in which the sale or
transfer takes place as may be selected by the Nigerian
company with the approval of the Board, and the
definition of "accounting period" in section 2 (a) of this
Act shall be construed accordingly, but without prejudice
to the continued application in respect of the Nigerian
company of the provisions of paragraphs (b), (c) and (d)
of that definition;
(b) direct that for the purposes of the Second Schedule the asset
sold or transferred to the Nigerian company by the company
selling or transferring the trade or business shall be deemed to
have been sold for an amount equal to the residue of the
qualifying expenditure on the asset on the day following the day
on which the sale or transfer thereof occurred; and
(c) direct that the Nigerian company acquiring the asset so sold
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