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

PART 5 - INTERPRETATION  

Division 1 - Definitions  

SECTION 34  

34   DEFINITIONS  
In this Act:

Acceptable Financial Accounting Standard
means any of the following:

(a) an accounting standard (within the meaning of the Corporations Act 2001 );

(b) the IFRS;

(c) the generally accepted accounting principles of any of the following:

(i) Brazil;

(ii) Canada;

(iii) Member States of the European Union;

(iv) Member States of the European Economic Area;

(v) Hong Kong (China);

(vi) Japan;

(vii) Mexico;

(viii) New Zealand;

(ix) the People ' s Republic of China;

(x) the Republic of India;

(xi) the Republic of Korea;

(xii) Singapore;

(xiii) Switzerland;

(xiv) the United Kingdom;

(xv) the United States of America.

Agreed Administrative Guidance
: see subsection 3(4) .

Annual Election
: see section 37 .

Applicable MNE Group
: see subsection 12(1) .

Authorised Accounting Body
means the body with legal authority in a jurisdiction to prescribe, establish or accept accounting standards for financial reporting purposes.

Authorised Financial Accounting Standard
, in respect of an Entity, means a set of generally acceptable accounting principles permitted by the Authorised Accounting Body in the jurisdiction where the Entity is located.

Commentary
: see subsection 3(4) .

Consolidated Financial Statements
of an Entity means:

(a) if the Entity is not the Ultimate Parent Entity of a Group under paragraph 18(4)(c) - the financial statements prepared by the Entity in accordance with an Acceptable Financial Accounting Standard, in which the assets, liabilities, income, expenses and cash flows of that Entity and the Entities in which it has a Controlling Interest are presented as those of a single economic unit; or

(b) if the Entity is the Ultimate Parent Entity of a Group under paragraph 18(4)(c) - the financial statements of the Entity that are prepared in accordance with an Acceptable Financial Accounting Standard; or

(c) if the Entity has prepared financial statements that are not covered by paragraph (a) or (b), but would be so covered if they were prepared in accordance with an Acceptable Financial Accounting Standard - those financial statements, adjusted to prevent any Material Competitive Distortions; or

(d) if the Entity has not prepared financial statements that are covered by paragraph (a), (b) or (c) - the financial statements of the Entity that would have been prepared if the Entity were required to prepare such financial statements in accordance with an Authorised Financial Accounting Standard that is:

(i) an Acceptable Financial Accounting Standard; or

(ii) another financial accounting standard that is adjusted to prevent any Material Competitive Distortions.

Constituent Entity
: see section 16 .

Controlling Interest
means an Ownership Interest in an Entity such that the holder of the Ownership Interest:

(a) is required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis in accordance with an Acceptable Financial Accounting Standard; or

(b) would have been required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis if the holder of the Ownership Interest had prepared Consolidated Financial Statements.

Note:

A Main Entity is taken to hold a Controlling Interest in its Permanent Establishments: see paragraph 18(2)(b) .

Covered Taxes
has the meaning given by the Rules.

Direct Ownership Interest
: see section 38 .

Direct Ownership Interest Percentage
: see section 39 .

Domestic Top-up Tax Amount
: see section 9 .

Entity
: see section 13 .

Excluded Entity
: see section 20 .

Excluded Service Entity
: see section 25 .

Filing Constituent Entity
, for an MNE Group, means a Constituent Entity of the MNE Group that files a GloBE Information Return for the MNE Group.

Financial Accounting Net Income or Loss
has the meaning given by the Rules.

Fiscal Year
means:

(a) if paragraph (b) does not apply - an accounting period with respect to which the Ultimate Parent Entity of an MNE Group prepares its Consolidated Financial Statements; or

(b) if paragraph (d) of the definition of Consolidated Financial Statements applies in relation to the Ultimate Parent Entity - a calendar year.

Five-Year Election
: see section 36 .

Flow-through Entity
has the meaning given by the Rules.

GloBE Information Return
has the meaning given by the Income Tax Assessment Act 1997 .

GloBE Rules
: see subsection 3(4) .

GloBE Threshold
, for a Fiscal Year: see subsection 12(3) .

Governmental Entity
: see section 21 .

Group
: see subsection 14(2) .

Group Entity
: see section 15 .

IFRS
means the International Financial Reporting Standards.

IIR Top-up Tax Amount
: see section 7 .

Indirect Ownership Interest
: see section 38 .

Indirect Ownership Interest Percentage
: see section 39 .

International Organisation
: see subsection 22(1) .

Investment Fund
: see section 24 .

Joint Venture
: see section 26 .

JV Group
: see subsection 27(1) .

JV Subsidiary
: see subsections 27(2) and (3) .

Main Entity
, in respect of a Permanent Establishment: see subsection 19(2) .

Material Competitive Distortion
, in respect of Consolidated Financial Statements:

(a) unless paragraph (b) applies - means an application of a specific principle or procedure, under the set of generally accepted accounting principles used in preparing the Consolidated Financial Statements, that results in an aggregate variation greater than 75 million Euros in a Fiscal Year as compared to the amounts that would have been determined by applying the corresponding IFRS principle or procedure; or

(b) if Rules made for the purposes of this paragraph define Material Competitive Distortion - has the meaning given by the Rules.

Note:

Section 35 allows the Rules to provide for currency translation in respect of amounts of aggregate variation.

MNE Group
: see subsection 14(1) .

Multi-Parented MNE Group
has the meaning given by the Rules.

Non-profit Organisation
: see subsection 22(2) .

OECD
means the Organisation for Economic Cooperation and Development.

OECD Model Tax Convention
means the Model Tax Convention on Income and on Capital published (from time to time) by the Council of the OECD.

Ownership Interest
: see section 38 .

Ownership Interest Percentage
: see section 39 .

Pension Fund
: see subsection 23(1) .

Pension Services Entity
: see subsection 23(2) .

Permanent Establishment
: see subsection 19(1) .

Qualified IIR
has the meaning given by the Rules.

Real Estate Investment Vehicle
: see subsection 24(1) .

Rules
means Rules made under subsection 29(1) .

Securitisation Entity
has the meaning given by the Rules.

Stateless Constituent Entity
: see subsections 41(3) , 42(3) and 43(2) .

Tax Treaty
means an agreement for the avoidance of double taxation with respect to taxes on income and on capital.

this Act
: see subsection 3(5) .

Ultimate Parent Entity
: see subsection 13(3) and paragraph 18(4)(c) .

UTPR Top-up Tax Amount
: see section 11 .