(1) In determining, for the purposes of group relief, whether a company is a 51% subsidiary of another, the other company shall be treated as not being the owner—
(a) of any share capital which it owns directly in a body corporate if a profit on a sale of the shares would be treated as a trading receipt of its trade;
(b) of any share capital which it owns indirectly and which is owned by a body corporate for which a profit on the sale of the shares would be a trading receipt; or
(c) of any share capital which it owns directly or indirectly in a body corporate not resident in Saint Lucia.
(2) Despite that any time a company is a 51% subsidiary of another company the former company shall not be treated at that time as such a subsidiary with respect to group relief unless, additionally at that time—
(a) the parent company is beneficially entitled to not less than 51% of any profits available for distribution to equity holders of the subsidiary company; and
(b) the parent company would be beneficially entitled to not less than 51% of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.
(Inserted by Act 15 of 2003)