Section 16

Subsection 44a(9) of the principal Act is amended by substituting for paragraph (b) the following paragraph:

“(b) the surrendering company gives an incorrect information in the return furnished under section 77a in respect of the amount of adjusted loss surrendered, the Director General may, by a notice in writing, require the surrendering company to pay a penalty equal to the amount of tax which had or would have been undercharged by the claimant company in consequence of the incorrect information and where the surrendering company is dissatisfied with the penalty, the surrendering company may within thirty days of being notified appeal to the

Special Commissioners as if the notice were a notice of assessment and the provision of this Act relating to appeals shall apply accordingly with any necessary modifications.”.