S.L. 123.189 чл. 4Joining a fiscal unit.

(1) Where a ninety-five per cent (95%) subsidiary joins a fiscal unit by virtue of an election made in terms of rule 3 -

(a) the balance of any item allowed to be carried forward thereby under the Act, under any rules made thereunder or any other tax credits that may be carried forward in terms of any other law, and

(b) the balance of any profits allocated to the tax accounts, excluding the untaxed account, of the ninety-five per cent (95%) subsidiary, existing at the end of the basis year preceding that with regard to which the election for the ninety-five per cent (95%) subsidiary to join the fiscal unit becomes effective, shall be considered to be a balance of the principal taxpayer as from the basis year with regard to which the election for the ninety-five per cent (95%) subsidiary to join the fiscal unit becomes effective:

Provided that where the ninety-five per cent (95%) subsidiary is not a hundred per cent (100%) subsidiary, the aggregation referred to in this sub-rule shall be subject to the approval of the holders of the equity shares which are not owned, directly or indirectly, by the parent company.

(2) In any circumstance in which the provisions of sub-rule

(1) do not apply, where the balances referred to in sub-rule (1) shall be retained by the ninety-five per cent (95%) subsidiary, such balances shall be kept in abeyance and not taken into account for the purposes of the Act for as long as the ninety-five per cent (95%) subsidiary remains a transparent subsidiary, after which time such balances shall once again become available to the ninety-five per cent (95%) subsidiary without reduction or limitation.