Article 35 Case Scenarios
Illustration:
A Ltd. holds 63% of voting power in B Ltd. and B Ltd. holds 80% voting power in C Ltd.
In above situation, A Ltd. holds 50% or more voting power in B Ltd., directly and in C Ltd. indirectly (i.e. through B Ltd.). Therefore, both B Ltd. & C Ltd. are deemed associated enterprises of A Ltd.
Illustration:
A ltd and B ltd are relatives. A ltd has control over X Ltd. and B ltd has control over Y Ltd.
Therefore, both X Ltd. and Y Ltd. will be deemed associated enterprises.