S.L. 123.1 Art. 8Transfer of asset.

Where a person acquires an asset from another person and -

(a) that person is controlled and beneficially owned to the extent of more than fifty per cent by the other person; or

(b) that person controls and beneficially owns more than fifty per cent of the other person; or

(c) both such persons are controlled and beneficially owned to the extent of more than fifty per cent by another person or persons, the wear and tear deductions that shall be due to such person shall be computed on the lesser of -

(i) the written down value of the asset in the hands of the other person on the date of acquisition by such person, such written down value being calculated after adding or deducting any balancing charge or allowance as the case may be; or

(ii) the cost of acquisition to the new owner.