“controlled foreign company” shall mean an entity or a permanent establishment, not resident in Gibraltar, whose profits are not taxable or are exempt from tax in Gibraltar when the following conditions are simultaneously fulfilled:  (a) in the case of an entity, the taxpayer by itself, or together with its associated enterprises: (i)  holds a direct or indirect participation of more than 50 percent of the voting rights; or  (ii) owns directly or indirectly more than 50 percent of capital; or (iii) is entitled to receive more than 50 percent of the profits of that entity; and  (b) the actual tax paid on its profits by the entity or permanent establishment is lower than the difference between the tax that would have been charged on the entity or permanent establishment in accordance with this Act and the actual tax paid on its profits by the entity or permanent establishment.