‘subsidiary’ means that company the capital of which includes the holding referred to in point (a).

It is furthermore necessary, in order to ensure fiscal neutrality, that the profits which a subsidiary distributes to its parent company be exempt from withholding tax.

A treasury pool agreement is an intra-group agreement under which a French subsidiary centralises the financing activities of a multinational group and is thus entrusted to borrow funds from its parent company to finance the activities of the group.

(8) This holding company owns the following subsidiaries Beaulieu Wielsbeke NV, Goed Ter Lembeek NV, Cefima NV, Verlico NV, Der Grüne Teppich GmbH, Beja Textil Lda, Beaulieu Service Centre Moskau, Datex NV, Beaulieu Kunstoffen NV, Chemical Finance Company, De Steenhout NV and Verlipack Holding NV.

The two new proposals aim: (a) to introduce a system similar to that established by the parent companies/subsidiaries Directive, which provides for the abolition of withholding taxes on dividends distributed by subsidiaries to their parent companies: the system to be introduced will permit abolition of ---------------------- (1) OJ No L 225 of 25 august 1990 - 2 - withholding taxes also on interest and royalty payments; (b) to establish tax arrangements under which undertakings will be authorized to take account, in their results, of losses incurred by their permanent establishments and subsidiaries in other Member States in order to en ...[+++]sure that those activities are treated no less favourably than national activities.

Neither GEC nor its subsidiaries are active in the contract hire market within the Community, although GEC runs a subsidiary which is a leading vehicle fleet management company in North America.