(1)
A person shall not be charged to tax under this Act in respect of gains on any acquisition and disposal of land by reference to a disposal to an authority exercising or having compulsory powers, if that person had not —
(a)
acquired the land at a time when he knew or might reasonably have known that it was likely to be acquired by the authority ; or
(b)
taken any steps by advertisement or otherwise to dispose of the land or to make his willingness to dispose of it known to the authority or others.
(2)
In this section, "authority exercising or having compulsory powers" means, in relation to any disposal of land, an authority, a person or body of persons acquiring the land compulsorily under the Land Use Act or any other similar enactment or law of a country other than Nigeria, or who has or have been, or may be authorised to acquire it compulsorily for the purposes for which it is acquired, or for whom another authority, person or body of persons has or have been, or may be authorised to acquire it.