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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 2 - Transitional CbCR Safe Harbour  

Subdivision G - Treatment of Hybrid Arbitrage Arrangements  

SECTION 8-125   MEANING OF DUPLICATE LOSS ARRANGEMENT  

8-125(1)    
A duplicate loss arrangement is an arrangement that results in an expense or loss being included in the financial statements of a Constituent Entity of an MNE Group located in a jurisdiction to the extent that:

(a)    the expense or loss is also included as an expense or loss in the financial statements of another Constituent Entity of the MNE Group; or

(b)    the arrangement also gives rise to a duplicate amount that is deductible for purposes of determining the taxable income of another Constituent Entity of the MNE Group located in another jurisdiction.

8-125(2)    
Despite paragraph (1)(a) , an arrangement is not a duplicate loss arrangement to the extent that the amount of the expense or loss is offset against revenue which is included in the financial statements of both Constituent Entities.

8-125(3)    
Despite paragraph (1)(b) , an arrangement is not a duplicate loss arrangement to the extent that the amount of the expense or loss is offset against revenue or income which is included in both:

(a)    the financial statements of the Constituent Entity including the expense or loss in its financial statements; and

(b)    the taxable income of the Constituent Entity claiming the deduction for the relevant expense or loss.