(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 that time -

(i) the company is a 75 per cent subsidiary (within the meaning of section 9) of the parent,

(ii) the parent is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the company, and