(1) Paragraph (3) of regulation 7 shall not apply to a section 2 (2) parent company which is itself a wholly-owned subsidiary of another undertaking established in an EEA State ("the parent undertaking") if paragraph (3) of this regulation is complied with; provided that the fact that the advantage of this regulation is being availed of shall be disclosed in a note to the accounts of the section 2 (2) parent company annexed to its annual return under the Principal Act.
(2) In this regulation, a company shall be deemed to be a wholly-owned subsidiary of another if:
(a) it would be so deemed for the purposes of section 150 of the Principal Act, or
(b) that other holds 90 per cent or more of the shares in the company and the remaining shareholders in the company have approved the treatment of the company as a wholly-owned subsidiary under this regulation.
(3) The requirements referred to in paragraph (1) are as follows:
(a) the company and its subsidiaries must be dealt with in group