E.—Amalgamation and demerger of shipping companiesAmalgamation.115VY.
Where there has been an amalgamation
of a company
with another company or companies, then, subject to the other provisions of this section, the provisions relating to the tonnage tax
scheme shall, as far as may be, apply to the amalgamated company if it is a qualifying company:Provided
that where the amalgamated company is not a tonnage tax company, it shall exercise an option for tonnage tax scheme under sub-section (1) of section 115VP
within three months from the date of the approval of the scheme of amalgamation:Provided further
that where the amalgamating companies are tonnage tax companies, the provisions of this Chapter shall, as far as may be, apply to the amalgamated company for such period as the option for tonnage tax scheme which has the longest unexpired period continues to be in force:Provided also
that where one of the amalgamating companies is a qualifying company as on the 1st day of October, 2004 and which has not exercised the option for tonnage tax scheme within the initial period, the provisions of this Chapter shall not apply to the amalgamated company and the income
of the amalgamated company from the business
of operating qualifying ships shall be computed in accordance with the other provisions of this Act.