S.L. 123.189 ст. 12Income tax return. Cap. 372. Payment of tax.

(1) Every principal taxpayer shall file a self-assessment and return in respect of the fiscal unit of which it is the principal taxpayer in such manner as the Commissioner shall determine. The provisions of the Act and of the Income Tax Management Act and of any rules prescribed thereunder shall apply mutatis mutandis to such self-assessment and return in the same manner as they apply to any company to which these rules do not apply.

(2) Where a company other than the principal taxpayer forms part of a fiscal unit, such company shall be exempted from the requirement to file a self-assessment and an income tax return:

Provided that the provisions of this sub-rule shall only apply for a year of assessment in respect of which the company formed part of a fiscal unit for the entire year preceding that year of assessment and where the chargeable income of that company is deemed to be derived by the principal taxpayer and is taken into account for the purposes of determining the total income of such principal taxpayer.

(3) Where a fiscal unit has been formed:

(a) the principal taxpayer and its hundred per cent (100%) subsidiaries which are transparent subsidiaries shall be jointly and severally liable for the payment of tax, additional tax and interest due by the fiscal unit;

(b) without prejudice to paragraph (a):

(i) the tax due by the fiscal unit may be apportioned between the principal taxpayer and its hundred per cent (100%) subsidiaries which are transparent subsidiaries as the principal taxpayer may determine;

(ii) the tax due by the fiscal unit, or part thereof, may also be apportioned to a transparent subsidiary which is a ninety-five per cent (95%) subsidiary but not a hundred per cent (100%) subsidiary in accordance with an agreement agreed to by and between the principal taxpayer and all of the holders of shares in that ninety-five per cent (95%) subsidiary which are not held directly or indirectly by the principal taxpayer.