GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Global Minimum Tax Act — G-3.3 (a)
undistributed net GloBE income , of an investment entity for a tested year, means the amount determined by the formula A − B where A is the investment entity’s GloBE income for the tested year (which, for greater certainty, does not include any amount deemed to be included in the investment entity’s GloBE income for that tested year because of clause (2)(d)(i)(A) or (2)(e)(i)(A)); and B is the total of all amounts, other than to the extent the amounts are taken into account as reductions in computing the undistributed net GloBE income of the investment entity for a previous tested year, each of which is (a) covered taxes paid or payable by the investment entity for the tested year, (b) a distribution or deemed distribution by the investment entity that is received by shareholders (other than other investment entities) in the testing period in respect of the tested year, (c) the investment entity’s GloBE loss for a fiscal year within the testing period in respect of the tested year, or (d) a GloBE loss of the investment entity for an election year that precedes the tested year, to the extent the loss was not taken into account as a reduction in computing the investment entity’s undistributed net GloBE income for any tested year preceding the tested year. ( revenu GloBE net non distribué )
Global Minimum Tax Act — G-3.3 (a)
non-material constituent entity means a particular constituent entity of an MNE group, or a permanent establishment of the particular constituent entity, if (a) the particular constituent entity’s assets, liabilities, income, expenses and cash flows are not included in the ultimate parent entity’s consolidated financial statements; (b) the consolidated financial statements are (i) described in paragraph (a) or (c) of the definition consolidated financial statements in subsection 2 (1), and (ii) externally audited and the accompanying auditor’s opinion does not contain objections or qualifications in relation to the exclusion of the particular constituent entity from the consolidation perimeter; and (c) where the total revenue, as reported on the MNE group’s country-by-country report, that is attributable to the particular constituent entity for a fiscal year is greater than €50 million, the financial accounts that are used to complete the MNE group’s country-by-country report are prepared in accordance with an acceptable financial accounting standard or authorized financial accounting standard. ( entité constitutive non matérielle )
Global Minimum Tax Act — G-3.3 (a)
relevant country-by-country reporting regulations , in respect of an MNE group, means (a) the country-by-country reporting requirements of (i) if the country-by-country report is filed by the ultimate parent entity of the MNE group, the jurisdiction where the ultimate parent entity is located, or (ii) if the country-by-country report is filed by the surrogate parent entity of the MNE group (as defined in the OECD final report referred to in paragraph (b)), the jurisdiction where the surrogate parent entity is located; or (b) in any other case, the Transfer Pricing Documentation and Country-by-Country Reporting, Action 13 - 2015 Final Report , published by the OECD on October 5, 2015 and the Guidance on the Implementation of Country-by-Country Reporting: BEPS Action 13 , published by the OECD in October 2022, as amended from time to time. ( règlements pertinents en matière de déclaration pays par pays )
Global Minimum Tax Act — G-3.3 (a)
simplified income , of a non-material constituent entity of an MNE group for a fiscal year, means (a) if an election is made under section 46 for the fiscal year, the amount determined under paragraph 46 (a) for the fiscal year; and (b) in any other case, the non-material constituent entity’s GloBE income or loss for the fiscal year. ( résultat net simplifié )
Global Minimum Tax Act — G-3.3 (a)
simplified revenue , of a non-material constituent entity of an MNE group for a fiscal year, means (a) if an election is made under section 46 for the fiscal year, the amount determined under paragraph 46 (a) for the fiscal year; and (b) in any other case, the non-material constituent entity’s financial accounting revenue for the fiscal year. ( chiffre d’affaires simplifié )
Global Minimum Tax Act — G-3.3 (a)
simplified tax , of a non-material constituent entity of an MNE group for a fiscal year, means (a) if an election is made under section 46 for the fiscal year, the amount determined under paragraph 46 (b) for the fiscal year; and (b) in any other case, the non-material constituent entity’s adjusted covered taxes for the fiscal year. ( impôt simplifié )
Global Minimum Tax Act — G-3.3 44
Qualified domestic minimum top-up tax safe harbour 44 The top-up amount of a particular constituent entity of an MNE group or particular joint venture entity in respect of an MNE group (referred to in this section as the “particular entity”) is deemed to be nil for a fiscal year, if (a) the particular entity is (i) located in a jurisdiction that has a qualified domestic minimum top-up tax for the fiscal year, or (ii) a stateless entity the top-up amount of which is subject to such a tax in a jurisdiction; (b) the jurisdiction’s qualified domestic minimum top-up tax has qualified domestic minimum top-up tax safe harbour status (including transitional qualified status) for the fiscal year as determined by the Inclusive Framework and published on the website of the OECD; (c) the filing constituent entity of the MNE group is permitted to elect, in accordance with chapter 5.1 of Tax Challenges Arising from the Digitalisation of the Economy – Administrative Guidance on the Global Anti-Base Erosion Model Rules (Pillar Two) July 2023 , published by the OECD on July 13, 2023, as amended from time to time, the qualified domestic minimum top-up tax safe harbour for the fiscal year in respect of the particular entity; and (d) the filing constituent entity of the MNE group elects to apply the qualified domestic minimum top-up tax safe harbour for the fiscal year in respect of the particular entity.
Global Minimum Tax Act — G-3.3 45
Simplified calculations safe harbour 45 The top-up amount of each standard constituent entity of an MNE group that is located in a jurisdiction for a particular fiscal year is deemed to be the amount that would be its top-up amount if the top-up percentage that is relevant in calculating that top-up amount were nil, if (a) all of the standard constituent entities of the MNE group that are located in the jurisdiction for the particular fiscal year are non-material constituent entities; (b) the filing constituent entity of the MNE group elects the simplified calculations safe harbour for the jurisdiction for a particular fiscal year; and (c) at least one of the following tests is met, in respect of the MNE group, for the jurisdiction in the particular fiscal year: (i) the de minimis threshold test described in subsection 47 (3), where (A) the reference to “total revenues of the MNE group for the jurisdiction for the year” in paragraph 47 (3)(a) is read as a reference to “total of all amounts each of which is the simplified revenue of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”, and (B) the reference to “profit (loss) before income tax of the MNE group for the jurisdiction for the year” in paragraph 47 (3)(b) is read as a reference to “total of all amounts each of which is the simplified income of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”, (ii) the simplified effective tax rate test described in subsection 47 (4), where (A) paragraphs 47 (4)(a), (b) and (c) are read as “at least 15%”, and (B) the simplified effective tax rate of the non-material constituent entities of the MNE group that are located in the jurisdiction for the particular fiscal year under subsection 47 (5) is the amount that it would be if (I) the reference to “qualifying income tax expense” in the description of A in that subsection were read as a reference to “simplified tax”, and (II) the reference to “the profit (loss) before income tax of the MNE group for the jurisdiction for the fiscal year” in the description of B in that subsection were read as a reference to “the total of all amounts each of which is the simplified income of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”, or (iii) the routine profits test described in subsection 47 (6), where (A) the reference to “qualified substance-based income exclusion” in paragraph 47 (6)(a) is read as a reference to “substance-based income exclusion”, and (B) the references to “profit (loss) before income tax of the MNE group for the jurisdiction for the year” in paragraphs 47 (6)(a) and (b) are read as references to “total of all amounts each of which is the simplified income of a non-material constituent entity of the MNE group that is located in the jurisdiction for the fiscal year”.
Global Minimum Tax Act — G-3.3 46
Non-material constituent entities 46 If the filing constituent entity of an MNE group elects in respect of a non-material constituent entity for a fiscal year, for the purposes of section 45 (a) the simplified income and simplified revenue of the non-material constituent entity are equal to the portion of the total revenues of the MNE group for the jurisdiction in which the non-material constituent entity is located, as determined in accordance with the relevant country-by-country reporting regulations, that is attributable to the non-material constituent entity for the fiscal year; and (b) the simplified tax of the non-material constituent entity is equal to the portion of the income tax accrued (current year) of the MNE group for the jurisdiction in which the non-material constituent entity is located, as determined in accordance with the relevant country-by-country reporting regulations, that is attributable to the non-material constituent entity for the fiscal year.
Global Minimum Tax Act — G-3.3 (a)
deduction/non-inclusion arrangement means an arrangement entered into after December 15, 2022 under which a particular constituent entity of an MNE group directly or indirectly provides credit to, or otherwise makes an investment in, another constituent entity of the MNE group that results in an expense or loss in the financial statements of any constituent entity, to the extent that (a) there is no commensurate increase in the revenue or gain in the financial statements of the particular constituent entity; (b) the particular constituent entity is not reasonably expected over the life of the arrangement to have a commensurate increase in its taxable income; and (c) the expense or loss is not solely in respect of qualifying tier one capital issued pursuant to regulatory requirements applicable to the banking sector. ( accord de déduction/non-inclusion )
Global Minimum Tax Act — G-3.3 (a)
duplicate loss arrangement means an arrangement entered into after December 15, 2022 that results in an expense or loss being included in the financial statements of a constituent entity of an MNE group, to the extent that (a) the expense or loss is also included as an expense or loss in the financial statements of another constituent entity of the MNE group; or (b) the arrangement also gives rise to a duplicate amount that is deductible for purposes of determining the taxable income of another constituent entity of the MNE group that is located in a different jurisdiction from the first constituent entity. ( accord de duplication de perte )
Global Minimum Tax Act — G-3.3 (a)
duplicate tax recognition arrangement means an arrangement entered into after December 15, 2022 that results in each of two or more constituent entities of an MNE group including all or any portion of the same income tax expense in its adjusted covered taxes or qualifying income tax expense, unless the arrangement (a) also results in the income subject to tax being included in the relevant financial statements of each of those constituent entities; or (b) would, in the absence of this paragraph, be a duplicate tax recognition arrangement solely because, in computing the simplified effective tax rate of the standard constituent entities of the MNE group that are located in a jurisdiction in a fiscal year under subsection (5), no adjustments are required in respect of income tax expenses that would otherwise be allocated to another constituent entity in determining its adjusted covered taxes. ( accord de duplication de dépense fiscale )
Global Minimum Tax Act — G-3.3
net unrealized fair value loss means the total of all amounts each of which is the loss of a standard constituent entity of an MNE group that is located in a jurisdiction arising from changes in fair value of ownership interests (other than portfolio holdings), as reduced by the total amount of gains of such entities arising from such changes. ( perte nette non réalisée de la juste valeur )
Global Minimum Tax Act — G-3.3 (a)
profit (loss) before income tax , of an MNE group for a jurisdiction for a fiscal year, means profit (loss) before income tax in the jurisdiction as reported on the MNE group’s qualified country-by-country report (or that would have been so reported if the MNE group had been required to file a country-by-country report), that is attributable to standard constituent entities, adjusted to (a) exclude any net unrealized fair value loss in the jurisdiction that exceeds €50 million; and (b) add back any amount recorded as a reduction in income in the financial accounts of a standard constituent entity that is attributable to an impairment of goodwill related to any transaction entered into after November 30, 2021, for the purposes of applying (i) the routine profits test under subsection (6), and (ii) the simplified effective tax rate test under subsection (4), if the financial accounts of the standard constituent entity do not also have a reversal of a deferred tax liability, or recognition or increase of a deferred tax asset, in respect of the impairment of goodwill. ( bénéfice (perte) avant impôts )
Global Minimum Tax Act — G-3.3 (a)
qualified country-by-country report , in respect of an MNE group, means a country-by-country report for a jurisdiction for a fiscal year that (a) is filed in accordance with the relevant country-by-country reporting regulations (as defined in section 43 ); (b) is prepared on the basis of qualified financial statements of the standard constituent entities of the MNE group for the jurisdiction for the fiscal year; and (c) in the case of a multi-parented MNE group, includes the information of all constituent entities of the multi-parented MNE group. ( déclaration pays par pays admissible )
Global Minimum Tax Act — G-3.3 (a)
qualified financial statements , of the standard constituent entities of an MNE group that are located in a jurisdiction for a particular fiscal year, means the financial accounts or financial statements of the standard constituent entities, if (a) the financial accounts or financial statements are (i) used to prepare the consolidated financial statements of the ultimate parent entity for the particular fiscal year, (ii) prepared in accordance with an acceptable financial accounting standard or authorized financial accounting standard, if the information contained in those statements is maintained based on that accounting standard and is reliable, (iii) if a standard constituent entity is not included in the consolidated financial statements of the MNE group on a line-by-line basis solely due to size or materiality grounds, the financial accounts of the standard constituent entity that are used for preparation of the MNE group’s country-by-country report, or (iv) if a standard constituent entity is a permanent establishment that does not have separate financial accounts described in subparagraph (i) or separate financial statements described in subparagraph (ii), the separate financial statements prepared by the main entity for the permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes; and (b) either (i) the financial accounts or statements do not incorporate purchase price accounting adjustments, or (ii) where the financial accounts or financial statements of one or more of the standard constituent entities incorporate purchase price accounting adjustments, it is the case that (A) the MNE group has not submitted a country-by-country report for a fiscal year beginning after December 31, 2022 and before the particular fiscal year that was based on the standard constituent entity’s financial accounts or financial statements without the purchase price accounting adjustments, or (B) the standard constituent entity was required by law or regulation to change its financial accounts or financial statements to include purchase price accounting adjustments for a fiscal year beginning after December 31, 2022 and that precedes or is the particular fiscal year. ( états financiers admissibles )
Global Minimum Tax Act — G-3.3 (a)
qualified person means (a) in respect of an ultimate parent entity that is a flow-through entity, a holder described in any of paragraphs 20 (1)(a) to (c); and (b) in respect of an ultimate parent entity that is subject to a deductible dividend regime, a dividend recipient described in any of paragraphs 21 (1)(a) to (c). ( personne admissible )
Global Minimum Tax Act — G-3.3 (a)
qualified substance-based income exclusion amount , of an MNE group for a jurisdiction for a fiscal year, means the substance-based income exclusion amount of the MNE group for the jurisdiction for the fiscal year determined without regard to the eligible payroll costs and eligible tangible asset amount of any standard constituent entity of the MNE group that is located in the jurisdiction that, for the purposes of the group’s qualified country-by-country report (a) is not regarded as a constituent entity of the MNE group; or (b) is not regarded as located in the jurisdiction. ( montant de l’exclusion de revenus fondée sur la substance admissible )
Global Minimum Tax Act — G-3.3 (a)
qualifying income tax expense means the income tax expense as reported on the qualified financial statements of a standard constituent entity of an MNE group, adjusted to exclude (a) any amount that does not relate to covered taxes; and (b) any amount that relates to uncertain tax positions. ( charges d’impôts admissibles )
Global Minimum Tax Act — G-3.3
total revenues , of an MNE group for a jurisdiction for a fiscal year, means total revenues in the jurisdiction as reported on the MNE group’s qualified country-by-country report (or that would have been so reported if the MNE group had been required to file a country-by-country report), that are attributable to standard constituent entities, adjusted to include the revenues of constituent entities of the MNE group that are held for sale and are not already included. ( recettes totales )
Global Minimum Tax Act — G-3.3 48
f subsection (4), an asset is deemed to be transferred by a transferor to a transferee on or after December 1, 2021, and before the transferor transition year, if a transaction or arrangement is entered into during that period in respect of the asset that (a) would not, in the absence of this subsection, be regarded as a transfer of the asset by a transferor to a transferee on or after December 1, 2021, and before the transferor transition year; and (b) is accounted for by one or more parties involved in the transaction or arrangement in the same or a similar manner to a change in ownership of the asset, or as giving rise to an asset. Interpretation — single-entity transactions (7) For greater certainty, the transaction or arrangement referred to in subsection (6) may involve only one entity — including where it results in an increase to the carrying value of an asset, or in the creation or increase of a deferred tax asset — in which case the transferor and transferee referred to in subsection (5) are the same entity. Interpretation — pre-existing deferred tax assets and liabilities (8) For greater certainty, for the purposes of subparagraph (5)(b)(i), any deferred tax assets or deferred tax liabilities in respect of an asset reflected in the transferee’s financial accounts immediately after the transfer and that were reflected in the transferor’s financial accounts immediately before the transfer are not deferred tax assets or deferred tax liabilities resulting from the transfer. Election — non-application of paragraph (5)(a) and subparagraph (5)(b)(ii) (9) Paragraph (5)(a) and subparagraph (5)(b)(ii) do not apply in respect of an asset transferred by a transferor to a transferee that is a constituent entity of an MNE group, if (a) the filing constituent entity of the MNE group elects; and (b) the following condition is met: A + B ≥ C × D where A is the sum of the amounts described in clauses (5)(b)(ii)(A) and (B) in respect of the transfer of the asset, B is the amount of any deferred tax asset in respect of a tax loss of the transferor that is demonstrated to have been reversed or to not have been created solely because any gain arising from the transfer of the asset was included in the taxable income of the transferor, C is the minimum rate, and D is the difference between local tax basis in the asset to the transferee immediately after the transfer and the carrying value of the asset at the beginning of the transferor transition year as would be determined under paragraph (5)(a) in the absence of this subsection.
Global Minimum Tax Act — G-3.3 49
Transitional rates for the substance-based income exclusion 49 (1) For the purposes of applying subsection 32 (1) in respect of a fiscal year beginning before 2032, the reference in that provision to “5% of the eligible payroll costs” is to be read as (a) “10% of the eligible payroll costs” if the fiscal year begins in 2023; (b) “9.8% of the eligible payroll costs” if the fiscal year begins in 2024; (c) “9.6% of the eligible payroll costs” if the fiscal year begins in 2025; (d) “9.4% of the eligible payroll costs” if the fiscal year begins in 2026; (e) “9.2% of the eligible payroll costs” if the fiscal year begins in 2027; (f) “9% of the eligible payroll costs” if the fiscal year begins in 2028; (g) “8.2% of the eligible payroll costs” if the fiscal year begins in 2029; (h) “7.4% of the eligible payroll costs” if the fiscal year begins in 2030; (i) “6.6% of the eligible payroll costs” if the fiscal year begins in 2031; and (j) “5.8% of the eligible payroll costs” if the fiscal year begins in 2032. Idem (2) For the purposes of applying subsection 32 (1) in respect of a fiscal year beginning before 2032, the reference in that provision to “5% of the eligible tangible asset amount” is to be read as (a) “8% of the eligible tangible asset amount” if the fiscal year begins in 2023; (b) “7.8% of the eligible tangible asset amount” if the fiscal year begins in 2024; (c) “7.6% of the eligible tangible asset amount” if the fiscal year begins in 2025; (d) “7.4% of the eligible tangible asset amount” if the fiscal year begins in 2026; (e) “7.2% of the eligible tangible asset amount” if the fiscal year begins in 2027; (f) “7% of the eligible tangible asset amount” if the fiscal year begins in 2028; (g) “6.6% of the eligible tangible asset amount” if the fiscal year begins in 2029; (h) “6.2% of the eligible tangible asset amount” if the fiscal year begins in 2030; (i) “5.8% of the eligible tangible asset amount” if the fiscal year begins in 2031; and (j) “5.4% of the eligible tangible asset amount” if the fiscal year begins in 2032.
Global Minimum Tax Act — G-3.3 50
Interpretation 50 This Part comprises provisions that (a) are intended to implement a qualified domestic minimum top-up tax that has qualified domestic minimum top-up tax safe harbour status (including transitional qualified status); and (b) are to be interpreted consistently with the requirements outlined in the GloBE Commentary.