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

CHAPTER 3 - COMPUTATION OF GloBE INCOME OR LOSS  

PART 3-2 - ADJUSTMENTS TO DETERMINE GloBE INCOME OR LOSS  

Division 2 - Other Article 3.2 adjustments  

SECTION 3-200   ADJUSTMENT - ELECTION TO APPLY CONSOLIDATED ACCOUNTING TREATMENT  
Election

3-200(1)    
A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to Constituent Entities of the MNE Group (each of which is a consolidated local entity ):

(a)    that are located in a specified jurisdiction; and

(b)    that are included in a tax consolidation group (see subsection (4) ).

3-200(2)    
An election under subsection (1) is a Five-Year Election.

Adjustment

3-200(3)    
If an election is made under subsection (1) , the following paragraphs apply in computing the amount of the GloBE Income or Loss of a consolidated local entity to which the election applies:

(a)    in computing that amount for a Fiscal Year to which the election applies, adjust the consolidated local entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to exclude income, expenses, gains and losses arising from transactions between consolidated local entities located in the same jurisdiction, to the extent that this reflects the consolidated accounting treatment of the Ultimate Parent Entity;

(b)    in computing that amount for the first Fiscal Year to which the election applies, adjust the consolidated local entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising as a result of making the election;

(c)    where the election is revoked in a Fiscal Year - in computing that amount for the Fiscal Year, adjust the consolidated local entity ' s Financial Accounting Net Income or Loss for the Fiscal Year so as to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising as a result of the revocation.

Interpretation - tax consolidation group

3-200(4)    
For the purposes of subsection (1) , Constituent Entities of an MNE Group located in a jurisdiction are included in a tax consolidation group if, under the law of that jurisdiction, the income, expenses, gains or losses of those Constituent Entities may be shared for tax purposes because of a connection between the Constituent Entities based on ownership or common control.