Taxation (Multinational - Global and Domestic Minimum Tax) Rules 2024
CHAPTER 6
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CORPORATE RESTRUCTURINGS AND HOLDING STRUCTURES
PART 6-2
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CONSTITUENT ENTITIES JOINING AND LEAVING AN MNE GROUP
Division 1
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Transfers of Ownership Interests
SECTION 6-15
APPLICATION OF THIS DIVISION
6-15(1)
This Division applies if: (a) there is a transfer of Ownership Interests in an Entity (the target ) in a Fiscal Year (the transfer year ); and (b) any of the following situations result from the transfer:
6-15(2)
To avoid doubt, the situations mentioned in paragraph (1)(b) can arise where any of the following occur: (a) the target ceases to be a Constituent Entity of the disposing MNE Group and becomes a Constituent Entity of the acquiring MNE Group; (b) the target becomes a Constituent Entity of the acquiring MNE Group because the acquiring MNE Group is a new Group and the target becomes the Ultimate Parent Entity of the acquiring MNE Group.
This Division applies if: (a) there is a transfer of Ownership Interests in an Entity (the target ) in a Fiscal Year (the transfer year ); and (b) any of the following situations result from the transfer:
(i) the target becomes a Constituent Entity of an MNE Group (the acquiring MNE Group );
(ii) the target ceases to be a Constituent Entity of an MNE Group (the disposing MNE Group ).
Note:
This Division does not apply if the transfer is treated and taxed as an asset sale by a relevant jurisdiction: see subsection 6-50(2) .
6-15(2)
To avoid doubt, the situations mentioned in paragraph (1)(b) can arise where any of the following occur: (a) the target ceases to be a Constituent Entity of the disposing MNE Group and becomes a Constituent Entity of the acquiring MNE Group; (b) the target becomes a Constituent Entity of the acquiring MNE Group because the acquiring MNE Group is a new Group and the target becomes the Ultimate Parent Entity of the acquiring MNE Group.
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