GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Global Minimum Tax Act — G-3.3 29
Definition of effective tax rate 29 (1) The effective tax rate , of an MNE group for a jurisdiction for a fiscal year, means (a) if the net GloBE income of the MNE group for the jurisdiction for the fiscal year is nil, the minimum rate; and (b) in any other case, the result (expressed as a percentage rounded to four decimal points) of the formula (A − B) ÷ C where A is the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for the fiscal year, B is the lesser of (i) the amount determined for A, and (ii) the excess negative tax expense of the MNE group for the jurisdiction for the fiscal year, and C is the net GloBE income of the MNE group for the jurisdiction for the fiscal year. Definition of net GloBE income (2) The net GloBE income , of an MNE group for a jurisdiction for a fiscal year, means the amount determined by the formula A − B where A is the total of all amounts each of which is the GloBE income for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction; and B is the total of all amounts each of which is the GloBE loss for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction. Definition of jurisdictional adjusted covered taxes (3) The jurisdictional adjusted covered taxes , of an MNE group for a jurisdiction for a fiscal year, means the total of all amounts each of which is the adjusted covered taxes for the fiscal year of a standard constituent entity of the MNE group that is located in the jurisdiction. Definition of excess negative tax expense (4) The excess negative tax expense , of an MNE group for a jurisdiction for a particular fiscal year, means the amount determined by the formula A + B − C where A is the absolute value of the total of all amounts each of which is the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction for a fiscal year (a) that precedes the particular fiscal year, (b) in which the amount that would, in the absence of section 8 , be the net GloBE income of the MNE group for the jurisdiction is nil or greater, and (c) in which the jurisdictional adjusted covered taxes of the MNE group for the jurisdiction are less than nil; B is the total of all amounts each of which is the amount by which the excess negative tax expense top-up amount, of a standard constituent entity of the MNE group that is located in the jurisdiction, for a fiscal year that precedes the particular fiscal year, is reduced because of an election under subsection 31 (5); and C is the total of all amounts each of which is the amount determined for B in the formula in paragraph (1)(b) in respect of the MNE group for the jurisdiction for a fiscal year, that precedes the particular fiscal year, in which that paragraph applies.
Global Minimum Tax Act — G-3.3 30
e of the application of any ETR adjustment provision in the particular fiscal year or any preceding fiscal year; and D is the total of all amounts each of which is the GloBE income, for the adjustment year, of a standard constituent entity of the MNE group that is located in the jurisdiction, as adjusted because of the application of any ETR adjustment provision in the particular fiscal year or any preceding fiscal year.
Global Minimum Tax Act — G-3.3 31
 the jurisdiction, under a qualified domestic minimum top-up tax of the jurisdiction, and G is the total of all adjustment top-up amounts of the MNE group for the jurisdiction for the fiscal year. Election — excess negative tax expense carry-forward (5) If the filing constituent entity of an MNE group elects for a jurisdiction for a fiscal year, the excess negative tax expense top-up amount of a standard constituent entity of the MNE group that is located in the jurisdiction for the fiscal year is deemed to be the greater of (a) nil; and (b) the portion of the excess negative tax expense top-up amount, determined without reference to this subsection, that can reasonably be considered to relate to a tax loss that was carried back from the fiscal year to another fiscal year of the MNE group ending before the fiscal year and deducted under the income tax laws of the jurisdiction in the other fiscal year.
Global Minimum Tax Act — G-3.3 32
 is the number of qualifying days. Election not to apply exclusion for a jurisdiction (16) The substance-based income exclusion amount of an MNE group for a jurisdiction for a fiscal year is deemed to be nil if the filing constituent entity of the MNE group elects under this subsection not to apply the substance-based income exclusion for the jurisdiction for the fiscal year.
Global Minimum Tax Act — G-3.3 33
uld, in the absence of section 8 , be determined by the formula A × B ÷ 365 where A is the total of all amounts each of which is the GloBE income or loss for the fiscal year of an eligible constituent entity of the MNE group that is located in the jurisdiction determined without taking into account any adjustment that is a decrease to the eligible constituent entity’s GloBE income or loss for the fiscal year resulting from the application of an ETR adjustment provision in a subsequent fiscal year; and B is the number of days in the fiscal year.
Global Minimum Tax Act — G-3.3 34
Deeming rule — minority-owned subgroup 34 (1) For the purposes of sections 29 to 31 and subsections 32 (1), (2), (4), (8) to (10) and (16), each minority-owned constituent entity that would, in the absence of this section, be a constituent entity of an MNE group is deemed not to be a constituent entity of the MNE group. Minority-owned constituent entity — top-up amount (2) The top-up amount of a minority-owned constituent entity (other than an investment entity or an insurance investment entity) of a minority-owned subgroup that is located in a jurisdiction for a fiscal year is the amount that would be determined under subsection 30 (1) if the references in sections 29 to 31 and subsections 32 (1) to (4), (8) to (10) and (16) to “MNE group” and “standard constituent entity” were read as references to “minority-owned subgroup” and “minority-owned constituent entity (other than an investment entity or an insurance investment entity)”, respectively. Interpretation rule (3) For the purposes of determining the top-up amount of a minority-owned constituent entity under subsection (2), subsection 21 (3) and sections 37 to 39 , 41 and 42 apply with such modifications, if any, as the context requires. Allocation of minority-owned constituent entity top-up amount (4) For the purposes of Division 1, the GloBE income of a minority-owned constituent entity of a minority-owned subgroup that is located in a jurisdiction for a fiscal year, is (a) if the net GloBE income of the minority-owned subgroup for the jurisdiction for the fiscal year, as computed in determining the top-up amount of the minority-owned constituent entity under subsection (2), is nil, the GloBE income that would be determined under subsection 15 (5) if the net GloBE income, and the allocated adjustment top-up amount and excess negative tax expense top-up amount of the minority-owned constituent entity, were the amounts computed in determining the top-up amount of the minority-owned constituent entity under subsection (2); and (b) in any other case, the GloBE income computed in determining the minority-owned constituent entity’s top-up amount under subsection (2).
Global Minimum Tax Act — G-3.3 36
nt entity” or “constituent entity” are to be read as references to “investment subgroup entity”, (iii) “GloBE income or loss”, except the references to that term in subsection 31 (1), paragraph 32 (3)(e) and subparagraph 32 (14)(d)(iii), are to be read as references to “investment entity GloBE income amount”, (iv) “GloBE income”, except the references to that term in paragraph 32 (5)(a) and subsection 32 (6), are to be read as references to “positive investment entity GloBE income amount”, (v) “GloBE loss” are to be read as references to “negative investment entity GloBE income amount”, (vi) “adjusted covered taxes”, except references to that term in subsection 31 (1), are to be read as references to “investment entity adjusted covered taxes amount”, (vii) “minority-owned subgroup” are to be read as references to “minority-owned investment subgroup”, and (viii) “minority-owned constituent entity (other than an investment entity or an insurance investment entity)” are to be read as references to “minority-owned investment entity”; (b) for greater certainty, all other amounts that are to be determined under sections 29 to 32 and 34 in determining the top-up amount of an investment subgroup entity of an investment subgroup are also to be determined applying the rules in paragraph (a); (c) the amounts that would, in the absence of this paragraph, be determined for A and B in the formula in subsection 32 (1) in respect of the investment subgroup entity are to be multiplied by the ratio determined by the formula A ÷ B where A is the investment entity GloBE income amount of the investment subgroup entity for the fiscal year, and B is the GloBE income or loss of the investment subgroup entity for the fiscal year; (d) despite paragraph (a), all references to “fiscal year” in sections 29 to 32 and 34 are to the fiscal year of the MNE group; and (e) any other modifications are made to sections 29 to 32 and 34 as the context requires. Interpretation rule (3) For the purposes of determining the top-up amount of an investment subgroup entity under subsection (2), subsection 21 (3) and sections 37 to 39 , 41 and 42 apply with such modifications, if any, as the context requires. Allocation of investment subgroup entity top-up amount (4) For the purposes of Division 1, the GloBE income of an investment subgroup entity of an investment subgroup that is located in a jurisdiction for a fiscal year, is (a) if the net GloBE income of the investment subgroup for the jurisdiction for the fiscal year, as computed in determining the top-up amount of the investment subgroup entity under subsection (2), is nil, the GloBE income that would be determined under subsection 15 (5) if the net GloBE income, and the allocated adjustment top-up amount and excess negative tax expense top-up amount of the investment subgroup entity, were the amounts computed in determining the top-up amount of the investment subgroup entity under subsection (2); and (b) in any other case, the GloBE income computed in determining the investment subgroup entity’s top-up amount under subsection (2).
Global Minimum Tax Act — G-3.3
investment entity adjusted covered taxes amount means the amount that would, in the absence of section 8 , be determined in respect of an investment subgroup entity for a fiscal year by the formula A − (B × A) where A is the amount of adjusted covered taxes of the investment subgroup entity for the fiscal year; and B is the minority investor percentage of the investment subgroup entity for the fiscal year. ( montant des impôts concernés ajustés de l’entité d’investissement )
Global Minimum Tax Act — G-3.3
investment entity GloBE income amount means the amount that would, in the absence of section 8 , be determined in respect of an investment subgroup entity for a fiscal year by the formula A − (B × A) where A is the GloBE income or loss of the investment subgroup entity for the fiscal year; and B is the minority investor percentage of the investment subgroup entity for the fiscal year. ( montant du revenu GloBE de l’entité d’investissement )
Global Minimum Tax Act — G-3.3
investment subgroup , in respect of an MNE group, means all investment subgroup entities of the MNE group. ( sous-groupe d’investissement )
Global Minimum Tax Act — G-3.3
investment subgroup entity , of an MNE group, means a constituent entity of the MNE group that is an investment entity or an insurance investment entity. ( entité de sous-groupe d’investissement )
Global Minimum Tax Act — G-3.3
minority investor percentage , of an investment subgroup entity for a fiscal year, means the percentage of the GloBE income or loss of the investment subgroup entity for the fiscal year that is attributable (based on the relevant assumptions) to any ownership interest in the investment subgroup entity, other than any ownership interest held, directly or indirectly, by the ultimate parent entity of the MNE group of which the investment subgroup entity is a constituent entity. ( pourcentage de l’investisseur minoritaire )
Global Minimum Tax Act — G-3.3 (a)
minority-owned investment entity , of a minority-owned subgroup of an MNE group, means a constituent entity of the MNE group that is (a) an investment entity or an insurance investment entity; and (b) included in the minority-owned subgroup. ( entité d’investissement à détention minoritaire )
Global Minimum Tax Act — G-3.3
minority-owned investment subgroup , in respect of a minority-owned subgroup, means all minority-owned investment entities of the minority-owned subgroup. ( sous-groupe d’investissement à détention minoritaire )
Global Minimum Tax Act — G-3.3 (a)
relevant assumptions , in respect of an attribution of GloBE income or loss for a fiscal year to an ownership interest in an investment subgroup entity, means the assumptions that (a) the principles of the authorized financial accounting standard applicable in the preparation of the consolidated financial statements for the fiscal year of the ultimate parent entity of the MNE group that includes the investment subgroup entity are used for the purposes of the attribution; (b) the net income of the investment subgroup entity is equal to its GloBE income or loss; and (c) no amount of the GloBE income or loss of the investment subgroup entity is attributable to transactions with other group entities of the MNE group. ( hypothèses pertinentes )
Global Minimum Tax Act — G-3.3 37
raph as “the amount otherwise determined”), minus the product obtained by multiplying the amount otherwise determined by the disposition recapture ratio of the departing constituent entity for the pre-departure year. Definition of disposition recapture ratio (6) The disposition recapture ratio of a departing constituent entity of an MNE group for a jurisdiction for a fiscal year means the lesser of (a) 1; and (b) the amount determined by the formula A ÷ B where A is the GloBE income of the departing constituent entity for the fiscal year, and B is the net GloBE income of the MNE group for the jurisdiction for the fiscal year.
Global Minimum Tax Act — G-3.3 38
t, (i) any deferred tax liability (referred to in this paragraph as the “transferred deferred tax liability”) that was taken into account in determining the transferred entity’s total deferred tax adjustment amount for a fiscal year in respect of the disposing MNE group and that has not reversed in or before the transfer year the transfer, is deemed (A) in respect of the disposing MNE group, to reverse in the group’s fiscal year immediately preceding the transfer year, and (B) in respect of the acquiring MNE group, to have arisen in, and been included in determining the transferred entity’s total deferred tax adjustment amount for, the transfer year, and (ii) if the transferred deferred tax liability does not reverse in any of the five fiscal years of the acquiring MNE group immediately following the transfer year, the reduction in adjusted covered taxes under subsection 25 (6) in respect of the recapture of the transferred deferred tax liability is to be applied in the fifth fiscal year immediately following the transfer year instead of in the transfer year; and (g) if the transferred entity is a relevant parent entity of two or more qualifying MNE groups for the transfer year, the transferred entity is to apply sections 14 and 18 separately in respect of each of those MNE groups for the transfer year. Transfers treated as transfers of assets and liabilities — application (2) Despite subsection (1), the acquisition or disposition by a constituent entity of an MNE group of a controlling interest in another entity (referred to in this subsection as the “transferred entity”) is to be treated as an acquisition or disposition, as the case may be, of the assets and liabilities of the transferred entity for the purposes of section 39 , if (a) the disposition — or the disposition giving rise to the acquisition, as the case may be — is treated in the same or substantially similar manner as a disposition of the transferred entity’s assets and liabilities under the laws of (i) if the transferred entity is a tax transparent entity at the time of the disposition, the jurisdiction in which the assets of the transferred entity are located, or (ii) in any other case, the jurisdiction in which the transferred entity is located; and (b) the jurisdiction referred to in subparagraph (a)(i) or (ii), as the case may be, imposes a covered tax on the transferor in respect of the disposition — or the disposition giving rise to the acquisition, as the case may be — that is calculated by reference to the amount by which the consideration paid or payable on the disposition, or the fair value of the assets and liabilities, exceeds the transferred entity’s tax basis in respect of the assets and liabilities.
Global Minimum Tax Act — G-3.3 39
y is the amount determined by the formula B − A − D where D is the non-qualifying loss, if any, in respect of the asset or liability arising in connection with the triggering event; (c) the net total amount of the gains and losses determined under paragraph (b) is to be (i) included in computing the particular constituent entity’s GloBE income or loss for the particular fiscal year, or (ii) divided into five equal amounts to be included in computing the particular constituent entity’s GloBE income or loss for the particular fiscal year and the four immediately following fiscal years; and (d) if subparagraph (c)(ii) applies and the particular constituent entity leaves the MNE group in any of the five fiscal years referred to in that subparagraph, any portion of the net total amount referred to in paragraph (c) that has not been included in computing the particular constituent entity’s GloBE income or loss for a previous fiscal year is to be included in computing its GloBE income or loss for the final fiscal year in which it was a constituent entity of the MNE group.
Global Minimum Tax Act — G-3.3 40
Multi-parented MNE group rules 40 (1) Except for this section and subparagraph 14 (3)(c)(ii), the following rules apply in respect of a multi-parented MNE group: (a) all the entities of all the groups (referred to in this section as the “constituent groups”) constituting the multi-parented MNE group are deemed to be entities of a single MNE group that is the multi-parented MNE group; (b) all the entities (other than excluded entities) of all the constituent groups are deemed to be constituent entities of the single MNE group; (c) references to the “consolidated financial statements” of an ultimate parent entity in this Act are to be read as references to the financial statements described in either paragraph (f) of the definition dual-listed arrangement , or paragraph (c) of the definition stapled structure , in subsection 2 (1), as applicable, and the financial accounting standard used in the preparation of those financial statements is deemed to be the accounting standard of the ultimate parent entities of each of the constituent groups; (d) the ultimate parent entity of each constituent group is deemed to be an ultimate parent entity of the single MNE group; and (e) references to “ultimate parent entity” in this Act are to be read as references to all of the ultimate parent entities of the constituent groups, as the context requires. Deemed group entities (2) If a particular entity would be included in a particular constituent group of a multi-parented MNE group if all the ownership interests in the particular entity held by group entities of the constituent groups of the multi-parented MNE group were held by a single group entity (other than the particular entity) of the particular constituent group, the particular entity is deemed (a) for the purposes of subsection (1) and subsection 11 (1), to be included in the particular constituent group; and (b) for the purposes of section 35 , not to be a joint venture or a joint venture subsidiary in respect of any of the constituent groups of the multi-parented MNE group.
Global Minimum Tax Act — G-3.3 41
Investment entity tax transparency election 41 (1) A constituent entity, of an MNE group, that is an investment entity or an insurance investment entity is deemed to be a flow-through entity that is a tax transparent entity in relation to a constituent entity-owner of the constituent entity, if (a) the filing constituent entity of the MNE group elects in respect of the constituent entity-owner under this subsection; and (b) either (i) both of the following conditions are met: (A) the constituent entity-owner is subject to tax in the jurisdiction where it is located under a mark-to-market or similar regime based on the annual changes in fair value of its ownership interest in the constituent entity, and (B) under that regime, the tax rate applicable to the constituent entity-owner with respect to those annual changes in fair value is greater than or equal to the minimum rate, or (ii) the constituent entity-owner is a mutual insurance company. Indirect constituent entity-owners (2) For the purposes of clause (1)(b)(i)(A), a constituent entity-owner is deemed to be subject to tax in the jurisdiction where it is located under a mark-to-market or similar regime with respect to its indirect ownership interest in an investment entity or an insurance investment entity, if the constituent entity-owner (a) holds that ownership interest through one or more other investment entities or insurance investment entities; and (b) is subject to tax in the jurisdiction where it is located under a mark-to-market or similar regime with respect to all its direct ownership interests in any entity described in paragraph (a). Five-year election (3) The following rules apply in respect of an election made under subsection (1): (a) the election is a five-year election; and (b) if the election is revoked at any time, for the purpose of determining the GloBE income or loss of the investment entity or insurance investment entity in respect of which the election was made after that time, any gain or loss from the disposition after that time of an asset or liability held by the entity is to be determined based on (i) if the entity’s assets and liabilities are accounted for on a fair value basis, the fair value of the asset or liability on the first day of the fiscal year in which the disposition occurs, and (ii) in any other case, the fair value of the asset or liability on the first day of the revocation year.
Global Minimum Tax Act — G-3.3 (a)
qualifying owner , of an investment entity, means an entity if (a) the entity (i) is a group entity in respect of the investment entity, (ii) is not an investment entity, and (iii) holds an ownership interest in the investment entity; and (b) it can reasonably be expected that the aggregate of the tax payable by the entity in respect of distributions from the investment entity and the tax payable by the entity in respect of the distributed profits is equal to or greater than the amount of the distributions multiplied by the minimum rate. ( détenteur admissible )
Global Minimum Tax Act — G-3.3 (a)
testing period in respect of the undistributed net GloBE income of an investment entity for a tested year, means the tested year and (a) if any of the three fiscal years immediately following the tested year is a revocation year, any fiscal years following the tested year that precede the revocation year; and (b) in any other case, the three fiscal years immediately following the tested year. ( période de test )