(1) Subject to subsection (2), where exploration expenditure, in respect of which an allowance may be claimed by virtue of section 673 or 674, or (as respects expenditure incurred on or after the 1st day of April, 1990) by virtue of section 673 as applied by section 679, is or has been incurred by a body corporate (in this section referred to as "the exploration company") and -
(a) another body corporate is or is deemed to be a wholly-owned subsidiary of the exploration company, or
(b) the exploration company is or is deemed to be a wholly-owned subsidiary of another body corporate,
then, the expenditure or so much of it as the exploration company specifies -
(i) in the case referred to in paragraph (a), may at the election of the exploration company be deemed to have been incurred by such other body corporate (being a body corporate which is or is deemed to be a wholly-owned subsidiary of the exploration company) as the exploration company specifies,
(ii) in the case referred to in pa
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