Cap. 123 Art. 16Definition of group.

For the purposes of this article and of articles 17 to 22, hereinafter collectively referred to (including this article) as the

"group relief provisions", two companies resident in Malta but neither of which is resident for tax purposes in any other country shall be deemed to be members of a group of companies if one is the fifty-one per cent subsidiary of the other or both are fifty-one per cent subsidiary of a third company resident in Malta.

For the purposes of the group relief provisions, a company shall be deemed to be a fifty-one per cent subsidiary of another company, hereinafter referred to as the "parent company":

(a) if and so long as more than fifty per cent of its ordinary share capital and more than fifty per cent of its voting rights are owned directly or indirectly by the parent company; and

(b) the parent company is beneficially entitled either directly or indirectly to more that fifty per cent of any profits available for distribution to the ordinary shareholders of the subsidiary company; and

(c) the parent company would be beneficially entitled either directly or indirectly to more than fifty per cent of any assets of the subsidiary company available for distribution to its ordinary shareholders on a winding up.