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

CHAPTER 6 - CORPORATE RESTRUCTURINGS AND HOLDING STRUCTURES  

PART 6-5 - MULTI-PARENTED MNE GROUPS  

SECTION 6-85   MEANING OF MULTI-PARENTED MNE GROUP ETC.  

6-85(1)    
Two or more Groups comprise a Multi-Parented MNE Group if:

(a)    the Ultimate Parent Entities of those Groups enter into an arrangement that is a Stapled Structure or a Dual-listed Arrangement; and

(b)    at least one of the controlled Entities (see subsection (2) ) of those Groups is located in a different jurisdiction to another of the other controlled Entities of those Groups.

6-85(2)    
For the purposes of paragraph (1)(b) , the following are controlled Entities of those Groups:

(a)    a Group Entity of any of those Groups;

(b)    a Permanent Establishment of any of those Groups;

(c)    an Entity in which a Controlling Interest is held by one or more Group Entities of any of those Groups.

6-85(3)    
Stapled Structure means an arrangement entered into by 2 or more Ultimate Parent Entities of separate Groups, under which all of the following apply:

(a)    50% or more of the Ownership Interests in the Ultimate Parent Entities of the separate Groups are (by reason of form of ownership, restrictions on transfer, or other terms or conditions) combined with each other;

(b)    those combined Ownership Interests cannot be transferred or traded independently;

(c)    if the combined Ownership Interests are listed - they are quoted at a single price;

(d)    one of the Ultimate Parent Entities prepares Consolidated Financial Statements:

(i) in which the assets, liabilities, income, expenses and cash flows of all the Entities that comprise the Groups are presented together as those of a single economic unit; and

(ii) that are required by a regulatory regime to be externally audited.

6-85(4)    
Dual-listed Arrangement means an arrangement entered into by 2 or more Ultimate Parent Entities of separate Groups, under which all of the following apply:

(a)    the Ultimate Parent Entities agree to combine their business by contract alone;

(b)    pursuant to contractual arrangements, the Ultimate Parent Entities will make distributions (with respect to dividends and in liquidation) to their owners based on a fixed ratio;

(c)    the Groups ' activities are managed as a single economic entity under contractual arrangements while retaining their separate legal identities;

(d)    the Ownership Interests in each of the Ultimate Parent Entities are quoted, traded or transferred independently in different capital markets;

(e)    the Ultimate Parent Entities prepare Consolidated Financial Statements:

(i) in which the assets, liabilities, income, expenses and cash flows of all the Entities that comprise the Groups are presented together as those of a single economic unit; and

(ii) that are required by a regulatory regime to be externally audited.