Commonwealth Numbered Acts

INDUSTRIAL RESEARCH AND DEVELOPMENT INCENTIVES ACT 1976 No. 85 of 1976 - SECT 5

5. (1) For the purposes of this Act-

   (a)  where a company is a subsidiary of another company, the
        first-mentioned company and that other company shall be deemed to be
        related to each other; and

   (b)  where 2 or more companies are each subsidiaries of another company,
        those companies and that other company shall be deemed to be related
        to each other.

(2) For the purposes of sub-section (1), where a company has shareholding
interests in the shares in another company exceeding in amount one-half of the
total of the amounts paid on all shares in the other company, that other
company shall be deemed to be the subsidiary of the first-mentioned company.

(3) For the purposes of this section-

   (a)  a company has a shareholding interest in the shares in another company
        if the first-mentioned company is beneficially entitled to, or is
        beneficially entitled to an interest in, any shares in the other
        company, whether or not the whole or any part of the legal ownership
        of the shares is vested in the first-mentioned company; and

   (b)  the amount of the shareholding interest is an amount equal to the
        value of the shares, or of the first-mentioned company's interest in
        the shares, as the case requires, on the basis that the value of the
        shares is equal to the amount paid on the shares.

(4) For the purposes of this section, where a company (in this sub-section
referred to as the ''first company'') has shareholding interests in the shares
in a company (in this sub-section referred to as the ''second company'') that
has shareholding interests in the shares in another company (in this
sub-section referred to as the ''third company''), the first company shall be
deemed to have shareholding interests in the shares in the third company (in
addition to any other shareholding interests) of an amount that bears to the
amount of the shareholding interests of the second company in the shares in
the third company the same proportion as the amount of the shareholding
interests of the first company in the shares in the second company bears to
the total of the amounts paid on all shares in the second company.

(5) In ascertaining for the purposes of the application of sub-section (4) the
extent and amount of the shareholding interests of a company in the shares in
another company, there shall be taken into account any shareholding interest
which that first-mentioned company is to be deemed to have in the shares in
that other company by any other application or applications of that
sub-section or this sub-section.

(6) A reference in this section to shares in a company shall be read as a
reference to shares in, or stock forming part of, the capital of a company and
a reference in this section to an amount paid on shares in a company shall be
read as including a reference to an amount treated by the company as having
been so paid.

(7) In this section-

''company'' does not include an unincorporated body or association of persons;

''share'', in relation to a company, means a share of a kind carrying voting
rights on all questions at general meetings of the company.