S.L. 379.8 Art. 3Calculation of turnover.

(1) Aggregate turnover within the meaning of regulation 2( ) shall comprise the amounts derived by each of the d undertakings concerned in the preceding financial year from the sale of products and the provision of services to other undertakings or consumers falling under the undertakings’ ordinary activities after deduction of sales rebates and of value added tax and other taxes directly related to turnover: Provided that the aggregate turnover of an undertaking concerned shall not include the sale of products or the provision of services between any of the undertakings referred to in sub-regulation (5).

(2) By way of derogation from subregulation (1), where the concentration consists in the acquisition of parts, whether or not constituted as legal entities, of one or more undertakings, only the turnover relating to the parts which are the subject of the transaction shall be taken into account with regard to the seller or sellers: Provided that where two or more such transactions take place within a two-year period between the same persons or undertakings they shall be treated as one and the same concentration arising on the date of the last transaction.

(3) In the case of credit institutions and other financial institutions, as regards regulation 2(d), the turnover of such institutions shall comprise the sum of the following income items, after deduction of value added tax and other taxes directly related to such items, where appropriate, that are received by the institution or its branch in Malta:

(i) interest income and similar income;

(ii) income from securities; - income from shares and other variable yield securities, - income from participating interests, - income from shares in affiliated undertakings;

(iii) commissions receivable;

(iv) net profit on financial operations;

(v) other operating income.

(4) In the case of insurance undertakings, the turnover of such undertakings shall consist of the value of gross premiums written which shall comprise all amounts received and receivable in respect of insurance contracts issued by or on behalf of the insurance undertakings, including also outgoing reinsurance premiums and after deduction of taxes and parafiscal contributions or levies charged by reference to the amounts of individual premiums or the total volume of premiums.

(5) Without prejudice to subregulation (2), the aggregate turnover of an undertaking concerned within the meaning of regulation 2(d) shall be calculated by adding together the respective turnovers of the following;

(i) the undertaking concerned;

(ii) those undertakings in which the undertaking concerned, directly or indirectly: - owns more than half the capital or business assets, or - has the power to exercise more than half the voting rights, or - has the power to appoint more than half the members of the board of directors or other body or bodies legally representing the undertakings, or - has the right to manage the undertakings’ affairs;

(iii) those undertakings which have in the undertaking concerned the rights or powers listed in paragraph (ii);

(iv) those undertakings in which an undertaking as referred to in paragraph (iii) has the rights or powers listed in paragraph (ii);

(v) those undertakings in which two or more undertakings as referred to in paragraphs (i) to (iv) jointly have the rights or powers listed in paragraph (ii).

(6) Where undertakings concerned by the concentration jointly have the rights or powers listed in subregulation (5)(ii), in calculating the aggregate turnover of the undertakings concerned for the purposes of regulation 2(d), no account shall be taken of the turnover resulting from the sale of products or the provision of services between the joint undertaking and each of the undertakings concerned or any other undertaking connected with any one of them, as set out in subregulation (5)(ii) to (v) but account shall be taken of the turnover resulting from the sale of products and the provision of services between the joint undertaking and any third undertakings, this turnover being apportioned equally amongst the undertakings concerned.