Section 16: Apportionment of income on incorporation and disincorporation

16. Apportionment of income on incorporation and disincorporation (1) Where a business is transferred to a company on incorporation and the persons who carried on that business prior to incorporation are the shareholders in that company immediately after incorporation, this Act shall have effect as if— (a) the business had not ceased or been transferred on incorporation; and (b) at all times prior to incorporation the company had been carrying on the business. (2) Where a business is transferred by a company on disincorporation and the persons who carry on that business after disincorporation were the shareholders in that company immediately prior to disincorporation, this Act shall have effect as if— (a) the business has not ceased or been transferred on disincorporation; and (b) at all times prior to disincorporation that person or those persons had been carrying on the business. [Issue 6] I5 – 20 Revised Laws of Mauritius (3) Where incorporation or disincorporation takes place during an income year, the gross income of the business for that income year shall be apportioned between the company and the person carrying on the business on the basis of the proportion of the income year before and after incorporation or disincorporation.