(1) For the purposes of section 693, where exploration expenditure (not being expenditure which has been or is to be met directly or indirectly by any other person) is incurred by a company (in this section referred to as an "exploration company") and -
(a) another company is a wholly-owned subsidiary of the exploration company, or
(b) the exploration company is at the time the exploration expenditure is incurred a wholly-owned subsidiary of another company (in this section referred to as "the parent company"),
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 company (being a wholly-owned subsidiary of the exploration company) as the exploration company specifies, and
(ii) in the case referred to in paragraph (b), may at the election of the exploration company be deemed to have been incurred by the parent company or by s
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