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 8-130   MEANING OF DUPLICATE TAX RECOGNITION ARRANGEMENT  

8-130(1)    
A duplicate tax recognition arrangement is an arrangement that results in more than one Constituent Entity of an MNE Group (the relevant Constituent Entities ) including part or all of the same income tax expense in its:

(a)    Adjusted Covered Taxes; or

(b)    income tax expense used for the purposes of computing the MNE Group ' s Simplified ETR for the jurisdiction in which the Constituent Entity is located.

8-130(2)    
Despite subsection (1) , an arrangement is not a duplicate tax recognition arrangement if the arrangement results in the income subject to the tax that gives rise to the income tax expense being included in the relevant financial statements of each relevant Constituent Entity.

8-130(3)    
Despite subsection (1) , an arrangement is not a duplicate tax recognition arrangement if it arises solely because, in determining a relevant Constituent Entity ' s Adjusted Covered Taxes, the relevant Constituent Entity ' s income tax expense used for the purposes of computing the MNE Group ' s Simplified ETR does not require adjustments for income tax expenses that are allocated to another relevant Constituent Entity.