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Transactions between associated persons and company succeeding to trade of another company.
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412.—(1) Where a company claiming relief under this Chapter (hereafter in this subsection referred to as the buyer) buys from another person (hereafter in this subsection referred to as the seller) and—
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(a) the seller has control over the buyer or, the seller being a body corporate or partnership, the buyer has control over the seller or some other person has control over both the seller and the buyer, and
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(b) the price in the transaction is less than that which might have been expected to obtain if the parties to the transaction had been independent parties dealing at arm's length,
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then, the profits of the buyer which are attributable to sales shall, for the purposes of this Chapter, be computed as if the price in the transaction had been that which would have obtained if the transaction had been a transaction between independent persons dealing as aforesaid.
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(2) In subsection (1) “control” has the meaning assigned to it by section 299 (6).
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(3) Where a company (hereafter in this subsection referred to as the succeeding company) succeeds to a trade or a part of a trade which, on or after the 6th day of April, 1960, was carried on by another company (hereafter in this subsection referred to as the original company) and the original company has or could have made a claim to relief under this Chapter, then, relief in so far as such relief relates to the trade or the part of the trade in question, shall be granted to the succeeding company only as respects the remaining years of claim for which such relief might have been claimed by the original company if it had continued to carry on the trade or the part of the trade in question.
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(4) The Revenue Commissioners may by notice in writing require the company to furnish them with such information or particulars as may be necessary for the purposes of this section, and section 404 (1) and 404 (3) shall have effect as if the matters of which proof is required by those subsections included the information or particulars specified in a notice under this subsection.
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(5) Where a company claims relief under this Chapter otherwise than by virtue of the provisions of section 399 (3), the foregoing provisions of this section shall have effect only in respect of transactions and successions occurring after the 19th day of April, 1961.
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