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

CHAPTER 7 - TAX NEUTRALITY AND DISTRIBUTION REGIMES  

PART 7-6 - TAXABLE DISTRIBUTION METHOD ELECTION  

SECTION 7-165   DEEMED DISTRIBUTIONS  

7-165(1)    
This section applies if:

(a)    an Investment Entity is a Constituent Entity of an MNE Group; and

(b)    there is an Undistributed Net GloBE Income Account for the Investment Entity for a Fiscal Year; and

(c)    the balance of the Undistributed Net GloBE Income Account is above zero at the end of the Fiscal Year; and

(d)    a Constituent Entity-owner of the Investment Entity has a proportionate share of the Undistributed Net GloBE Income Account at a time in the Fiscal Year; and

(e)    an Ownership Interest of the Constituent Entity-owner in the Investment Entity is transferred at that time to an Entity that is not a Group Entity of the MNE Group.

7-165(2)    
For the purposes of this Part:

(a)    treat the Investment Entity as having made a deemed distribution to the Constituent Entity-owner at that time; and

(b)    treat the amount of the deemed distribution as being the amount of the proportionate share at that time (disregarding this section).