Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024

CHAPTER 4 - COMPUTATION OF ADJUSTED COVERED TAXES  

PART 4-4 - MECHANISM TO ADDRESS TEMPORARY DIFFERENCES  

Note:

The Total Deferred Tax Adjustment Amount is added to Adjusted Covered Taxes under paragraph 4-5(b) .

SECTION 4-90   TOTAL DEFERRED TAX ADJUSTMENT AMOUNT - EFFECT OF SUBSTITUTE LOSS CARRY-FORWARD DTA  

4-90(1)    
This section applies if a Constituent Entity of an MNE Group has a Substitute Loss Carry-forward DTA.

4-90(2)    
(Repealed by FRLI No F2026L00908)

4-90(3)    
For the purposes of computing the Total Deferred Tax Adjustment Amount of the Constituent Entity for a Fiscal Year, treat the Substitute Loss Carry-forward DTA as a deferred tax asset in computing the relevant deferred tax expense mentioned in subsection 4-85(1) in relation to the Fiscal Year.

4-90(4)    

In computing the relevant deferred tax expense mentioned in subsection (3) , take account of the reversal of the Substitute Loss Carry-forward DTA only to the extent that:

(a)    if the Substitute Loss Carry-forward DTA arises under subsection 4-95(1) - the foreign tax credit that gave rise to the Substitute Loss Carry-forward DTA is used to offset tax liability on income included in the Constituent Entity ' s GloBE Income or Loss; or

(b)    if the Substitute Loss Carry-forward DTA arises under subsection 4-95(2) or (3) - the recharacterisation of income mentioned in that subsection increases the foreign tax credits used to offset tax liability on income included in the Constituent Entity ' s GloBE Income or Loss.

4-90(5)    
Paragraph 4-85(2)(e) does not apply in relation to the Substitute Loss Carry-forward DTA.