(1) For the purposes of this section and of the following sections of this Chapter -
(a) subject to sections 617(5), 621(1) and 623(7), a reference to a company or companies shall apply only to a company or companies, as limited by subsection (2), being a company or, as the case may be, companies which, by virtue of the law of a relevant Member State, is or are resident for the purposes of tax in such a relevant Member State, and for this purpose -
'relevant Member State', in addition to the meaning assigned to that expression by subsection (7), shall be deemed to include the United Kingdom;
'tax', in relation to a relevant Member State other than the State, means any tax imposed in the relevant Member State which corresponds to corporation tax in the State;
and references to a member or members of a group of companies shall be construed accordingly;
(b) a company is an effective 75 per cent subsidiary of another company (in this paragraph referred to as 'the parent') at any time if at
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