S.L. 123.189 чл. 3Formation of a fiscal unit. S.L. 372.14

(1) A parent company may make an election in order for itself and its ninety-five per cent (95%) subsidiary to form a fiscal unit:

Provided that the ninety-five per cent (95%) subsidiary must have its accounting period beginning and ending on the same dates as the accounting period of the parent company in all the years in which it forms part of the fiscal unit and in determining whether this condition is satisfied the provisions of article 18(2) of the Act shall, mutatis mutandis, apply:

Provided further that where the ninety-five per cent (95%) subsidiary is not a hundred per cent (100%) subsidiary, such election shall also require the approval of the holders of the equity shares which are not owned, directly or indirectly, by the parent company.

(2) A ninety-five per cent (95%) subsidiary whose parent company made an election in terms of sub-rule (1) shall be referred to as a "transparent subsidiary" for the purposes of these rules.

(3) Where a parent company has made an election in terms of sub-rule (1) in respect of more than one ninety-five per cent (95%) subsidiary, each ninety-five per cent (95%) subsidiary in respect of which the election is made shall form part of the same fiscal unit of its parent company.

(4) Where a parent company has made an election in terms of sub-rule (1) in respect of its ninety-five per cent (95%) subsidiary and the ninety-five per cent (95%) subsidiary is itself a parent company of one or more transparent subsidiaries, the ninety-five per cent (95%) subsidiary and its transparent subsidiaries shall join the fiscal unit of the parent company of the said ninety-five per cent (95%) subsidiary.

(5) No company shall form part of more than one fiscal unit at any one time.

(6) An election made in terms of this rule shall be made in such form as the Commissioner may require. The fiscal unit shall be registered as such and the principal taxpayer shall assume the rights, duties and obligations under the Income Tax Acts relative to that fiscal unit. Save as otherwise may be provided, and without prejudice to the Final Settlement System (FSS) Rules, during the time that the fiscal unit exists, the rights, duties and obligations of companies forming part of that fiscal unit under the Income Tax Acts relating to those years of assessment for which the said companies form part of the fiscal unit shall be suspended.

(7) An election made in terms of this rule may be revoked in such form and under such conditions as the Commissioner may require.

(8) An election made by a parent company in terms of sub-rule (1) in respect of its ninety-five per cent (95%) subsidiary shall become effective as from the year of assessment in which it is made:

Provided that if such election is made after the date by when the said ninety-five per cent (95%) subsidiary is due to file an income tax return for that year of assessment, the election will enter into effect as from the following year of assessment.