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

CHAPTER 6 - CORPORATE RESTRUCTURINGS AND HOLDING STRUCTURES  

PART 6-2 - CONSTITUENT ENTITIES JOINING AND LEAVING AN MNE GROUP  

Division 2 - Transfer of Ownership Interests treated as transfer of assets and liabilities  

SECTION 6-50   TRANSFER OF OWNERSHIP INTERESTS TREATED AS TRANSFER OF ASSETS AND LIABILITIES  

6-50(1)    
Subsections (2) and (3) apply if:

(a)    there is an acquisition or disposal of a Controlling Interest in a Constituent Entity (the target ); and

(b)    the following jurisdiction treats that acquisition or disposal in the same or similar manner as an acquisition or disposition of the assets and liabilities of the target:

(i) unless subparagraph (ii) applies - the jurisdiction in which the target is located;

(ii) if the target is a Tax Transparent Entity - the jurisdiction in which those assets are located; and

(c)    that jurisdiction imposes a Covered Tax on the person disposing of the Controlling Interest based on the difference between:

(i) the tax basis of those assets and liabilities; and

(ii) the consideration paid in exchange for the Controlling Interest, or the fair value of the assets and liabilities.

6-50(2)    
Division 1 of this Part does not apply in relation to the acquisition or disposal of the Controlling Interest.

6-50(3)    
For the purposes of this instrument, treat the acquisition or disposal of the Controlling Interest as an acquisition or disposal of the assets and liabilities of the target.

Note:

For acquisitions and disposals of assets and liabilities, see Part 6-3 .