Global Minimum Tax Act — G-3.3 18
ar being determined by the formula A × B ÷ C where A is the lesser of (i) the aggregate asset loss of local entities for the particular loss year, less the total of the amounts, if any, already allocated to those entities for that particular year under this paragraph because of a previous election under this subsection, and (ii) the aggregate asset gain, less the total of the amounts, if any, allocated in respect of that gain under this paragraph to local entities for a preceding loss year, B is the particular local entity’s net asset loss for the particular loss year, and C is the total of all amounts, each of which is the net asset loss of a local entity for the particular loss year; and (e) if any amount of the aggregate asset gain remains after reducing it by the total of the amounts in respect of the aggregate asset gain allocated to local entities under paragraph (d), that remainder is allocated evenly to each fiscal year in the look-back period (each referred to in this paragraph as a “look-back year”), with the amount that is allocated to a particular local entity for a particular look-back year being determined by the formula A ÷ 5 × B ÷ C where A is the aggregate asset gain, less the total of the amounts in respect of that aggregate asset gain allocated to local entities under paragraph (d), B is (i) if no local entity has a net asset gain for the particular look-back year, 1, and (ii) in any other case, the particular local entity’s net asset gain for the particular look-back year, and C is (i) if subparagraph (i) of the description of B applies, the total number of local entities for the particular look-back year, and (ii) if subparagraph (ii) of the description of B applies, the total of all amounts, each of which is the net asset gain of a local entity for the particular look-back year. Tax consolidated group — election (24) If a filing constituent entity elects under this subsection in respect of the standard constituent entities of an MNE group that are located in a particular jurisdiction and included in a tax consolidated group (each referred to in this subsection as a “relevant local entity”), the following rules apply: (a) the financial accounting income of the relevant local entities is adjusted for a fiscal year for which the election has effect by applying the consolidated accounting treatment of the ultimate parent entity to eliminate income, expenses, gains and losses arising from transactions between relevant local entities; (b) the election is a five-year election; (c) the financial accounting income of the relevant local entities is to be adjusted for the first fiscal year for which the election has effect to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising as a result of electing under this subsection; (d) if an election under this subsection is revoked, the financial accounting income of relevant local entities is to be adjusted for the revocation year to ensure that there are no duplications or omissions of items of income, expenses, gains or losses arising as a result of the revocation; and (e) for the purposes of this subsection, relevant local entities that are located in a jurisdiction are considered to be included in a tax consolidated group if, under the law of that jurisdiction, the income, expenses, gains or losses of those group entities may be shared for tax purposes by virtue of a connection between the entities based on ownership or common control. Qualified debt release — election (25) If a filing constituent entity elects under this subsection for a fiscal year in respect of a constituent entity, the constituent entity’s GloBE income or loss excludes any qualified debt release amounts of the entity for the year. Permanent establishments — losses (26) Despite subsection 17 (3), if a constituent entity that is a permanent establishment would, in the absence of this subsection, have a GloBE loss (referred to in this subsection as