(a) This section shall apply to any distribution which -
(i) is a distribution by virtue only of section 130(2)(d)(iv), or
(ii) is a dividend paid by a company (in this subsection referred to as "the first-mentioned company") to another company -
(A) of which the first-mentioned company is a 75 per cent subsidiary, or
(B) which is a member of a consortium which owns the first-mentioned company,
and
(II) which is a resident of a territory with the government of which arrangements having the force of law by virtue of section 826 have been made.
(b) For the purposes of paragraph (a) -
a company shall be owned by a consortium if 75 per cent or more of the ordinary share capital of the company is beneficially owned between them by 5 or fewer companies of which none beneficially owns less than 5 per cent of that capital, and those companies are referred to as "members of the consortium";
a company shall be regarded as being a resident of a territory if it is so regarded under ar