41A. Interpretation in respect of sections 41B to 41J
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(1) For the purposes of sections 41B to 41J—
“capital allowances” means the allowances specified in section 40;
“claimant company” means a company which utilises the trading loss of a surrendering company;
“current loss” means a trading loss incurred for the current income year;
“51% subsidiary” means a body corporate of which—
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(a) 51% or more of the ordinary share capital of that body corporate is beneficially owned, whether directly or indirectly by another body corporate; and
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(b) 51% or more of the voting rights are attached to its share capital;
“surrendering company” means a company which suffers a trading loss and surrenders this loss to another company for the purposes of group relief;
“trading loss” means the assessed loss referred to in section 41 but does not include capital allowances and expenses payable to a group member and claimed as a deduction if corresponding amounts have not been included in the income of the group member for the income year.
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(2) Group relief is relief that allows the trading loss, excluding the current loss, of a surrendering company to be set off, by way of relief from tax, against the profits of a claimant company where both companies satisfy the provisions of the group test set out in subsections (3) and (4).
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(3) Group relief is available where a surrendering company and a claimant company are members of the same group.
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(4) For the purposes of subsection (3) 2 companies are regarded as being members of the same group where—
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(a) one company is a 51% subsidiary of the other company; or
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(b) both companies are 51% subsidiaries of a third company.
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(5) Every company engaged in group relief must be resident in Saint Lucia.
(Inserted by Act 15 of 2003)