Subsidiary Company

Subsidiary Company means:
a business entity whose voting stock is more than 50% owned by another firm. This Company or corporation is effectively controlled by another company (i.e. the parent company). For tax purposes, a parent company must own at least 80% of a subsidiary in order to file a consolidated tax return. A variety of criteria, including share ownership ratio, may be employed to determine whether one company is a subsidiary of another company for tax purposes.