Section 47 : Disposal upon amalgamation of property and liability

1) If, as a result of the acquisition of any property or bearing of any liability by any person, any other property under the ownership of, or any other liability is borne by, that person ceases or is amalgamated, and thus disposal takes place, then the following provisions shall apply:

(a) Where net expenses were incurred for the amalgamated property or liability immediately before disposal, that person:

(1) shall be deemed to have received an amount equal to the net expenses in respect of the disposal of the amalgamated property or liability,

Provided that such amount shall not exceed the amount received by that person for the amalgamated liability.

(2) shall be deemed to have incurred expenses in a sum equal to that amount in holding ownership or bearing liability of the amalgamated property.

(b) Where net incomes were earned for the amalgamated liability in respect of the amalgamated liability, immediately before the disposal of the liability, that person:

(1) shall be deemed to have incurred expenses in a sum equal to net incomes for the disposal of the amalgamated liability,

Provided that in the case of the amalgamated property, that amount shall not exceed the amount spent by that person in acquiring that property.

(2) shall be deemed to have received an amount equal to that amount in holding ownership of or bearing liability of the amalgamated property.

2) Without prejudice to the matters contained in subsection (1), that sub-section shall also apply to the following circumstances:

(a) If that person carries out an act of acquisition or sale of any property,

(b) If that person acquires the property leased, and

(c) If the guaranteed liability is transferred by the transferee.