Article 97 - Requirement for QFC Entity to be a Going Concern

(1) A QFC Entity may only make a claim under Article 96 at a time when it is a going concern.
(2) If a QFC Entity ceases to be a going concern after making a claim under Article 96, but before payment of the tax credit by the Tax Department, it is treated as if it had not made the claim.
(3) For the purposes of Article 97(1) and Article 97(2), and subject to Article 97(4), a QFC Entity is a going concern if—
(a) its latest accounts prepared in accordance with GAAP and the laws of the QFC were prepared on a going concern basis;
(b) nothing in those accounts indicates that they were only prepared on a going concern basis because of an expectation that the QFC Entity would receive a tax credit in respect of Reimbursable Tax Losses under this Part; and
(c) it is actively seeking business.
(4) A QFC Entity is not a going concern at any time if it is in administration or liquidation.
(5) For the purposes of this Article, a QFC Entity is in administration if—
(a) it is in administration under the Insolvency Regulations 2005, or
(b) a corresponding situation under the law of a country or territory outside the State exists in relation to the QFC Entity.
(6) For the purposes of this Article a QFC Entity is in liquidation if—
(a) it is in liquidation within the meaning of the Insolvency Regulations 2005, or
(b) a corresponding situation under the law of a country or territory outside the State exists in relation to the QFC Entity.
(7) For the purposes of Article 97(3), accounts prepared in accordance with GAAP has the same meaning given by Article 15(2).
Inserted (as from 18th June 2014)