Income Tax Act (Cap. 123), article 16

16. For the purposes of this article and of articles 17 to 22, hereinafter collectively referred to (including this article) a s 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 fift y-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 anothe r company, hereinafter referred to as the "par ent 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. Surrender of relief between members of groups. Added by: XVII. 1994.13.