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

CHAPTER 6 - CORPORATE RESTRUCTURINGS AND HOLDING STRUCTURES  

PART 6-5 - MULTI-PARENTED MNE GROUPS  

SECTION 6-80   MULTI-PARENTED MNE GROUPS  

6-80(1)    
This section is made for the purposes of section 28 of the Act.

6-80(2)    
In applying the Act and this instrument in relation to 2 or more Groups (the separate Groups ) that comprise a Multi-Parented MNE Group in respect of a Fiscal Year:

(a)    treat the Group Entities and Constituent Entities of each separate Group as Group Entities and Constituent Entities respectively of a single MNE Group (the combined MNE Group ); and

(b)    treat an Entity (other than an Excluded Entity) as a Constituent Entity of the combined MNE Group if:

(i) it is consolidated on a line-by-line basis with the combined MNE Group; or

(ii) Constituent Entities in the combined MNE Group hold a Controlling Interest in it; and

(c)    treat the Consolidated Financial Statements referred to in subsection 6-85(3) or (4) (as the case may be) as the Consolidated Financial Statements of each of the Ultimate Parent Entities of the combined MNE Group; and

(d)    treat:

(i) the Ultimate Parent Entities of the separate Groups as the Ultimate Parent Entities of the combined MNE Group; and

(ii) references in the Act and this instrument to an Ultimate Parent Entity as being a reference to each of those Ultimate Parent Entities, for the purposes of applying the Act and this instrument in relation to the combined MNE Group; and

(e)    for the purposes of computing, under section 2-5 , the IIR Top-up Tax Amounts of a Parent Entity of the combined MNE Group (including an Ultimate Parent Entity of the combined MNE Group) for a Fiscal Year, compute in accordance with Parts 2-1 to 2-3 its Allocable Share of the Top-up Tax of a Constituent Entity of the combined MNE Group that is a Low-Taxed Constituent Entity.