For being part of the gains group the subsidiary should own 75% of the subsidiary (1st condition to be met for being a member of gains group), Lise owns only 70% of Ruth even though Hahn owns more than 50% of the of Ruth (2nd condition to be met for being a member of the gains group). Since Ruth is not a member of the gains group so the purchase of the asset by the company will not qualify for ROR.