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 1 - Transfers of Ownership Interests  

SECTION 6-15   APPLICATION OF THIS DIVISION  

6-15(1)    
This Division applies if:

(a)    there is a transfer of Ownership Interests in an Entity (the target ) in a Fiscal Year (the transfer year ); and

(b)    any of the following situations result from the transfer:

(i) the target becomes a Constituent Entity of an MNE Group (the acquiring MNE Group );

(ii) the target ceases to be a Constituent Entity of an MNE Group (the disposing MNE Group ).

Note:

This Division does not apply if the transfer is treated and taxed as an asset sale by a relevant jurisdiction: see subsection 6-50(2) .

6-15(2)    
To avoid doubt, the situations mentioned in paragraph (1)(b) can arise where any of the following occur:

(a)    the target ceases to be a Constituent Entity of the disposing MNE Group and becomes a Constituent Entity of the acquiring MNE Group;

(b)    the target becomes a Constituent Entity of the acquiring MNE Group because the acquiring MNE Group is a new Group and the target becomes the Ultimate Parent Entity of the acquiring MNE Group.