916. Groups of companies: in general.

Where any bodies corporate are registered as members of a group1, any business2 carried on by a member of the group is treated as carried on by the representative member3, and:

  1.  

    (1)     any supply of goods or services by a member of the group to another member of the group is disregarded4;

  2.  

    (2)     any supply to which head (1) above does not apply and which is a supply of goods or services by or to a member of the group is treated as a supply by or to the representative member5; and

  3.  

    (3)     any VAT paid or payable by