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

CHAPTER 8 - ADMINISTRATION  

PART 8-2 - SAFE HARBOURS  

Division 1 - Preliminary  

SECTION 8-5   APPLICATION OF THIS PART TO MINORITY-OWNED CONSTITUENT ENTITIES, JOINT VENTURES AND INVESTMENT ENTITIES  
Minority-Owned Constituent Entities (MOCEs)

8-5(1)    
Subsections (2) and (3) apply unless an MNE Group meets the SC De minimis test for a jurisdiction for a Fiscal Year.

Note:

In determining whether an MNE Group meets the SC De minimis test, MOCEs are not treated as if they comprised a separate MNE Group or were the only Constituent Entities of the MNE Group located in a jurisdiction.

8-5(2)    
In applying Divisions 3 and 4 :

(a)    treat the purposes mentioned in subsection 5-120(3) (MOCEs that comprise a Minority-Owned Subgroup) as including the purposes of this Part; and

(b)    treat paragraph 8-155(2)(a) as having been repealed.

8-5(3)    
In applying Divisions 3 and 4 :

(a)    treat the purposes mentioned in subsection 5-125(3) (MOCEs that are not part of a Minority-Owned Subgroup treated as only Constituent Entities of the MNE Group) as including the purposes of this Part; and

(b)    treat the purposes mentioned in subsection 5-125(5) (MOCEs that are not part of a Minority-Owned Subgroup treated as not being Constituent Entities of the MNE Group) as including the purposes of this Part; and

(c)    treat paragraph 8-155(2)(a) as having been repealed.

Note:

As a result of subsections (2) and (3) , Divisions 2 and 3 are applied separately in relation to MOCEs.

Joint Ventures

8-5(4)    
In applying Divisions 2 , 3 and 4 , treat the purposes mentioned in subsection 6-75(3) (Joint Ventures) as including the purposes of this Part.

Note:

As a result of this subsection, Divisions 2 , 3 and 4 are applied separately to a Joint Venture and its JV Subsidiaries (which are treated as a separate MNE Group because of section 6-75 ).

Investment Entities

8-5(5)    
In applying Divisions 3 and 4 :

(a)    treat the purposes mentioned in subsection 7-100(1) (Investment Entities treated as only Constituent Entities of the MNE Group) as including the purposes of this Part; and

(b)    treat the purposes mentioned in subsection 7-115(1) (Investment Entities treated as not being Constituent Entities of the MNE Group) as including the purposes of this Part.

Note 1:

As a result of this subsection, this Part is applied separately to Investment Entities.

Note 2:

For the application of Division 2 of this Part to Investment Entities, see section 8-95 .