Global Minimum Tax Act — G-3.3 2
one of the persons owns directly or indirectly, (i) if the other person is a corporation, shares of the capital stock of the corporation that (A) give their holder at least 50% of the votes of the shareholders of the corporation, and (B) have a fair market value of at least 50% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation, and (ii) in any other case, at least 50% of the beneficial interest in the other person; or (c) a third person owns, directly or indirectly, in respect of each of the other persons (i) if one or both of those other persons are corporations, shares of the capital stock of each such corporation that (A) give their holder at least 50% of the votes of the shareholders of the corporation, and (B) have a fair market value of at least 50% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation, and (ii) if one or both of those persons are not corporations, at least 50% of the beneficial interest in each such person. ( acheteur non lié ) UTPR means a law of a jurisdiction that may reasonably be considered to have been enacted with the intention of implementing, in whole or in part, Articles 2.4 to 2.6 of the GloBE Model Rules. ( RPII ) Interpretation — permanent establishment (2) In applying the provisions of this Act in respect of a constituent entity that is a permanent establishment of a main entity or that is the main entity, (a) a reference to a “constituent entity” is to be interpreted as a reference to the permanent establishment or the main entity, as the context requires; and (b) the main entity is deemed to hold a controlling interest in the permanent establishment. Interpretation — flow-through entity (3) In applying the provisions of this Act in respect of a constituent entity that is a flow-through entity or that is an owner in respect of the flow-through entity, a reference to a “constituent entity” is to be interpreted as a reference to the owner or the flow-through entity, as the context requires. Interpretation — financial accounts (4) A reference to financial accounts or to financial statements is to be interpreted as a reference to the accounts or statements (which may in some circumstances be hypothetical) that are the basis for determining the financial accounting income of a constituent entity. Interpretation — connected (5) A person or entity is “connected” with another person or entity if they are “closely related” within the meaning of that term in Article 5(8) of the OECD Model Tax Convention. Interpretation — trusts (6) A reference to a trust includes an estate, and a reference to a trustee includes any legal representative of a trust having ownership or control of the trust property of that trust. Interpretation — subject to qualified IIR, etc. (7) A constituent entity of, or joint venture entity in respect of, an MNE group (referred to in this subsection as the “subject entity”) is considered to be subject to (a) a qualified IIR or qualified UTPR if a constituent entity of the MNE group (or person liable on behalf of a constituent entity) would, if the subject entity had a top-up amount (or equivalent) greater than nil, be subject to tax under the qualified IIR or the qualified UTPR, as the case may be, in respect of that top-up amount (or equivalent); and (b) a qualified domestic minimum top-up tax (including, for greater certainty, the one implemented in Part 3) if a constituent entity of, or joint venture entity in respect of, the MNE group (or person liable on behalf of a constituent entity or joint venture entity) would, if the subject entity had a domestic top-up amount (or equivalent) greater than nil, be subject to tax under the qualified domestic minimum top-up tax in respect of that domestic top-up amount (or equivalent). Deemed flow-through entity and tax transparent entity (8) A constituent entity that is not subject to covered taxes as a result of being tax resident