(b) to a person for or in connection with an activity that is
conducted for the council or councils under a written arrangement between the
subsidiary and the council or councils.
(2) The written arrangement referred
to in subsection (1) (b) must include a provision for the payment by the
subsidiary to the council or councils of an amount approximately equivalent to
the amount of tax that would be payable by the subsidiary under this Act but
for the exemption.