GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Global Minimum Tax Act — G-3.3 22
ing the fiscal year, except any amount that is recorded as a reduction to the constituent entity’s relevant current tax expense for the fiscal year, and (ii) in any other case, the portion of the tax credit that is (A) used to reduce the constituent entity’s liability for a covered tax for a taxable period that ends during the fiscal year, and (B) not recorded as a reduction to the constituent entity’s relevant current tax expense for the fiscal year; (c) in respect of the transfer of a non-marketable transferable tax credit (other than a tax credit the tax benefit of which is a flow-through tax benefit), (i) if the constituent entity is an originator of the tax credit, any amount received by the constituent entity in exchange for the transfer of the tax credit during the fiscal year, and (ii) if the constituent entity is a purchaser of the tax credit and transfers the tax credit to another person during the fiscal year, the amount of any gain on that transfer; (d) any portion of any amount that is credited or refunded to the constituent entity (other than in respect of a qualified refundable tax credit, marketable transferable tax credit or tax credit the tax benefit of which is a flow-through tax benefit), in respect of covered taxes, that is not treated as an adjustment to the constituent entity’s relevant current tax expense for the fiscal year; (e) any portion of the constituent entity’s relevant current tax expense for the fiscal year that relates to an uncertain tax position; and (f) any portion of the constituent entity’s relevant current tax expense for the fiscal year that is not expected to be paid on or before the day that is three years after the day on which the fiscal year ends. Adjusted covered taxes — special regimes (4) For greater certainty, (a) if an amount is excluded in computing the GloBE income of a constituent entity under subsection 20 (1), the entity’s adjusted covered taxes are to be reduced proportionally; and (b) if an amount is excluded in computing the GloBE income of a constituent entity under subsection 21 (1), the entity’s adjusted covered taxes (other than the taxes for which a dividend deduction under that subsection was allowed) are to be reduced proportionally. Adjusted covered taxes — no double counting (5) For the purposes of determining a constituent entity’s adjusted covered taxes, an amount, in respect of covered taxes, is not to be taken into account more than once in determining the adjusted covered taxes of (a) a constituent entity for a particular fiscal year or another fiscal year; or (b) more than one constituent entity for a particular fiscal year or another fiscal year.
Global Minimum Tax Act — G-3.3 23
Definition of covered taxes 23 (1) Covered taxes means taxes (other than excluded taxes) that (a) are recorded in the financial accounts of a particular constituent entity in respect of its (i) income or profits, or (ii) share of the income or profits of another entity that is (A) a group entity in respect of the particular constituent entity, and (B) an entity in which the particular constituent entity holds, directly or indirectly, an ownership interest; (b) are imposed under an eligible distribution tax system; (c) are imposed in lieu of an income or profits tax of general application; or (d) are charged by reference to (i) retained earnings and corporate equity, or (ii) multiple components consisting of retained earnings, corporate equity and income or profits. Definition of excluded taxes (2) Excluded taxes means (a) any tax under a qualified IIR; (b) any tax under a qualified domestic minimum top-up tax; (c) any tax under, or as a result of the application of, a qualified UTPR; (d) a disqualified refundable imputation tax; and (e) a tax paid or accrued by an insurance company in respect of returns to policyholders.
Global Minimum Tax Act — G-3.3 24
diction, determined without regard to any amount that is described in subparagraph (i). Allocation — hybrid entities (5) The following rules apply for the purposes of allocating amounts in respect of covered taxes from a constituent entity-owner to a constituent entity (referred to in this subsection as the “hybrid entity”) of an MNE group that is a hybrid entity in relation to the constituent entity-owner: (a) subject to paragraph (b), an amount in respect of covered taxes (referred to in this subsection as the “covered taxes amount”) recorded in the financial accounts of the constituent entity-owner for a fiscal year is allocated from the constituent entity-owner to the hybrid entity to the extent the covered taxes are in respect of income of the hybrid entity; and (b) if the covered taxes are, in whole or in part, in respect of passive income of the hybrid entity, the amount to be allocated from the constituent entity-owner to the hybrid entity under paragraph (a), in respect of the portion of the covered taxes that are in respect of the hybrid entity’s passive income, is not to exceed the lesser of (i) the portion of the covered taxes amount that is in respect of the hybrid entity’s passive income, and (ii) the amount determined by the formula A × B where A is the amount of the hybrid entity’s passive income that is included in computing the covered taxes of the constituent entity-owner under the fiscal transparency rule in the jurisdiction where it is located, and B is the top-up percentage of the MNE group for the jurisdiction where the hybrid entity is located, determined without regard to the portion of the covered taxes amount that is in respect of the hybrid entity’s passive income. Allocation — distributions (6) An amount in respect of covered taxes (referred to in this subsection as the “covered taxes amount”) for a fiscal year is allocated from a constituent entity-owner to a particular constituent entity in which it holds a direct ownership interest, if the covered taxes amount is (a) recorded in the financial accounts of the constituent entity-owner for the fiscal year; and (b) in respect of a dividend or similar amount, in respect of the direct ownership interest, that is distributed — or deemed, under the tax laws of the jurisdiction in which the particular constituent entity is located, to be distributed — by the particular constituent entity to the constituent entity-owner in the fiscal year.
Global Minimum Tax Act — G-3.3 25
 carry-forward recapture amount in subsection 2 (1) occurs, in an amount equal to the tax credits used by the constituent entity solely as a result of the recharacterization of income in the recharacterization year, to the extent that (i) the tax credits arise under the income tax laws of the particular jurisdiction in respect of tax paid to the government of a jurisdiction other than the particular jurisdiction, (ii) the amount of the recharacterized income in the recharacterization year, together with the total amounts of recharacterized income in the preceding fiscal years, does not exceed the substitute loss carry-forward recapture amount, and (iii) the tax credits are used to reduce or eliminate covered taxes that would otherwise be owing by the constituent entity under the income tax laws of the particular jurisdiction in respect of any amount of income that is included in computing the constituent entity’s GloBE income or loss. Deferred tax asset below minimum rate (5) The amount of a deferred tax asset recorded in the financial accounts of a constituent entity of an MNE group for a fiscal year is deemed to be the amount that it would be if the tax rate applicable in determining the amount of the deferred tax asset were the minimum rate, if the following conditions are met: (a) the tax rate that would, in the absence of this subsection, be applicable in determining the amount of the deferred tax asset is less than the minimum rate; and (b) the deferred tax asset is a loss deferred tax asset that is attributable to a GloBE loss of the constituent entity for the fiscal year. Recaptured deferred tax liability (6) For the purpose of applying subsection 31 (1) in a fiscal year (referred to in this subsection as the “current fiscal year”), the adjusted covered taxes of a constituent entity for a fiscal year (referred to in this subsection as the “adjustment fiscal year”) that is the fifth fiscal year preceding the current fiscal year are to be reduced to the extent of all or the portion of any deferred tax liability that is (a) included in determining the total deferred tax adjustment amount of the constituent entity for the adjustment fiscal year; (b) not paid in any of the five fiscal years following the adjustment fiscal year; and (c) not a recapture exception accrual.
Global Minimum Tax Act — G-3.3 27
ncome for tax purposes for the prior year multiplied by the minimum rate, and (iii) is treated as having been reversed in the prior year for the purposes of applying subsection 31 (1) in respect of the prior year. Adjustments — deferred tax expense (2) For the purposes of subsection (1), a change, in a fiscal year (referred to in this subsection as the “current year”), in a constituent entity’s deferred tax expense that arose in a prior fiscal year is to be treated as an adjustment, in the current year, to the constituent entity’s liability for covered taxes, recorded in the financial accounts, for the prior year to the extent that (a) the change results from a reduction, in the current year, to the rate of tax — that was applicable in determining the deferred tax expense for the prior year — below the minimum rate; and (b) the deferred tax expense was reflected in determining the constituent entity’s total deferred tax adjustment amount for the prior year. Idem (3) For the purposes of subsection (1), (a) a change, in a particular fiscal year, in a constituent entity’s deferred tax expense that arose in a prior fiscal year is to be treated as an adjustment, in the fiscal year in which the deferred tax expense is reversed, to the constituent entity’s liability for covered taxes, recorded in the financial accounts, for the prior year to the extent that (i) the change results from an increase, in the particular year, to the rate of tax — that was applicable in determining the deferred tax expense for the prior year — from a rate that was less than the minimum rate, and (ii) the deferred tax expense was reflected in determining the constituent entity’s total deferred tax adjustment amount for the prior year; and (b) any portion of the change that is attributable to an increase of the rate of tax in excess of the minimum rate is to be disregarded in determining the adjustment under paragraph (a). Adjustments — unpaid covered taxes (4) For the purposes of applying subsection 31 (1) in a fiscal year (referred to in this subsection as the “current year”), a constituent entity’s adjusted covered taxes for another fiscal year (referred to in this subsection as the “prior year”) are to be adjusted to exclude any portion of the current tax expense that is recorded, in respect of covered taxes, in the constituent entity’s financial accounts for the prior year and included in its adjusted covered taxes for the prior year, if (a) the portion is not paid by the day (referred to in this subsection as the “specified day”) that is three years after the last day of the prior year; (b) the specified day is within the current year; and (c) the portion is greater than €1 million.
Global Minimum Tax Act — G-3.3
adjusted investment amount , of an owner in respect of a qualified flow-through ownership interest for a fiscal year (referred to in this definition as the “determination year”), means the amount determined by the formula A − B − C where A is the investment amount of the owner in respect of the ownership interest; B is the total of all amounts each of which is the qualified flow-through tax benefits of the owner in respect of the ownership interest for a fiscal year preceding the determination year; and C is the total of all amounts each of which is the other flow-through amounts of the owner in respect of the ownership interest for the determination year or any preceding fiscal year. ( montant d’investissement ajusté )
Global Minimum Tax Act — G-3.3 (a)
excess benefits , of an owner in respect of a proportional amortization method interest for a particular fiscal year, means the amount determined by the formula A + B − C where A is (a) if the amount determined for C is equal to the proportional investment reduction amount of the owner in respect of the interest for the particular fiscal year, the other flow-through amounts of the owner in respect of the interest for the particular fiscal year, and (b) in any other case, the lesser of (i) the other flow-through amounts of the owner in respect of the interest for the particular fiscal year, and (ii) the amount determined by the formula D − E where D is the proportional amortization method investment remaining amount of the owner in respect of the interest for the fiscal year immediately preceding the particular fiscal year, and E is the qualified flow-through tax benefits of the owner in respect of the interest for the fiscal year immediately preceding the particular fiscal year; B is the flow-through tax benefits of the owner in respect of the interest for the particular fiscal year, to the extent that the owner’s current tax expense in respect of covered taxes in its financial accounts can reasonably be considered to have been increased (or to not have been reduced) solely because of the application of the proportional amortization method, or another financial accounting method that provides similar results as to current tax expense, in respect of the interest for the particular fiscal year; and C is the lesser of (a) the amount determined for subparagraph (b)(ii) of the description of A, and (b) the proportional investment reduction amount of the owner in respect of the interest for the particular fiscal year. ( bénéfices excédentaires )
Global Minimum Tax Act — G-3.3
expected tax benefits ratio , of an owner in respect of a proportional amortization method interest for a fiscal year, means the amount determined by the formula A ÷ B where A is the flow-through tax benefits of the owner in respect of the interest for the fiscal year; and B is the total amount of flow-through tax benefits that the owner reasonably expects, at the time when the interest is first acquired, to receive in respect of the interest. ( ratio des avantages fiscaux attendus )
Global Minimum Tax Act — G-3.3 (a)
flow-through tax benefits , of an owner in respect of a qualified flow-through ownership interest for a fiscal year, means the total of all amounts each of which is (a) the tax benefit, in respect of a tax credit (other than a qualified refundable tax credit or marketable transferable tax credit of the owner), received by the owner in respect of the ownership interest for the fiscal year; or (b) the tax benefit, in respect of a tax loss, received by the owner in respect of the ownership interest for the fiscal year. ( avantages fiscaux intermédiaires )
Global Minimum Tax Act — G-3.3
investment amount , of an owner in respect of an ownership interest, means the total fair market value of all consideration provided by the owner for the ownership interest. ( montant d’investissement )
Global Minimum Tax Act — G-3.3 (a)
other flow-through amounts , of an owner in respect of a qualified flow-through ownership interest for a fiscal year, means the total of the following amounts received by the owner in respect of the ownership interest in the fiscal year: (a) the tax benefits of qualified refundable tax credits and marketable transferable tax credits of the owner; (b) distributions (including returns of capital); and (c) proceeds from sales of all or part of the ownership interest. ( autres montants intermédiaires )
Global Minimum Tax Act — G-3.3
proportional amortization method interest means a qualified flow-through ownership interest in respect of which the owner uses the proportional amortization method for financial accounting purposes. ( participation selon la méthode d’amortissement proportionnelle )
Global Minimum Tax Act — G-3.3 (a)
proportional amortization method investment remaining amount , of an owner in respect of a proportional amortization method interest for a fiscal year (referred to in this definition as the “determination year”), means the amount determined by the formula A − B where A is the investment amount of the owner in respect of the interest; and B is the total of all amounts each of which is the lesser of the following amounts for the determination year or a preceding fiscal year: (a) the amount determined by the formula C + D where C is (i) in the case of the determination year, nil, and (ii) in any other case, the qualified flow-through tax benefits of the owner in respect of the interest for the fiscal year, and D is the other flow-through amounts of the owner in respect of the interest for the fiscal year, and (b) the proportional investment reduction amount of the owner in respect of the interest for the fiscal year. ( montant de l’investissement résiduel selon la méthode d’amortissement proportionnelle )
Global Minimum Tax Act — G-3.3
proportional investment reduction amount , of an owner in respect of a proportional amortization method interest for a fiscal year, means the amount determined by the formula A × B where A is the investment amount of the owner in respect of the interest; and B is the expected tax benefits ratio of the owner in respect of the interest for the fiscal year. ( montant de la réduction de l’investissement proportionnel )
Global Minimum Tax Act — G-3.3 (a)
qualified flow-through ownership interest means, subject to subsection (5), an ownership interest in a particular tax transparent entity held by a constituent entity of an MNE group directly, or indirectly through one or more other tax transparent entities that are not constituent entities of the MNE group, if (a) the assets, liabilities, income, expenses and cash flows of the particular tax transparent entity are not consolidated on a line-by-line basis in the consolidated financial statements of the ultimate parent entity of the MNE group; and (b) at the time the ownership interest was acquired by the owner, the total return to be received by the owner (including distributions, the tax benefits of tax losses and the tax benefits of qualified refundable tax credits and marketable transferable tax credits of the owner received in respect of the ownership interest, but excluding the tax benefits of tax credits other than qualified refundable tax credits and marketable transferable tax credits of the owner) from its investment in the ownership interest could not reasonably have been expected to be greater than or equal to the investment amount of the owner in respect of the ownership interest. ( titre de participation intermédiaire admissible )
Global Minimum Tax Act — G-3.3 (a)
qualified flow-through tax benefits , of an owner in respect of a qualified flow-through ownership interest for a fiscal year in which the ownership interest is subject to an election under subsection 18 (7), means (a) if the ownership interest is a proportional amortization method interest, the least of (i) the flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year, (ii) the proportional amortization method investment remaining amount of the owner in respect of the ownership interest for the fiscal year, and (iii) the amount, if any, by which the proportional investment reduction amount, of the owner in respect of the ownership interest for the fiscal year, exceeds the other flow-through amounts of the owner in respect of the ownership interest for the fiscal year; and (b) in any other case, the lesser of (i) the flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year, and (ii) the adjusted investment amount of the owner in respect of the ownership interest for the fiscal year. ( avantages fiscaux intermédiaires admissibles )
Global Minimum Tax Act — G-3.3 (a)
recapture amount , of an owner in respect of a qualified flow-through ownership interest for a particular fiscal year, means the lesser of (a) the amount determined by the formula A − B + C where A is the other flow-through amounts of the owner in respect of the ownership interest for the particular fiscal year, B is (i) if the ownership interest is a proportional amortization method interest, (A) where the amount determined for C in the formula in the definition excess benefits in this subsection is equal to the proportional investment reduction amount of the owner in respect of the ownership interest for the particular fiscal year, the amount determined for A, and (B) in any other case, the proportional amortization method investment remaining amount of the owner in respect of the ownership interest for the fiscal year immediately preceding the particular fiscal year, and (ii) in any other case, the adjusted investment amount of the owner in respect of the ownership interest for the fiscal year immediately preceding the particular fiscal year, and C is (i) where clause (i)(A) of the description of B applies, nil, and (ii) in any other case, the qualified flow-through tax benefits of the owner in respect of the ownership interest for the fiscal year immediately preceding the particular fiscal year, and (b) the amount determined by the formula D − E where D is the total of all amounts each of which is the qualified flow-through tax benefits of the owner in respect of the ownership interest for a fiscal year preceding the particular fiscal year, and E is the total of all amounts each of which is the recapture amount of the owner in respect of the ownership interest for a fiscal year preceding the particular fiscal year. ( montant de récupération )
Global Minimum Tax Act — G-3.3 (a)
tax benefit , of an owner in respect of a qualified flow-through ownership interest (a) includes, in respect of a tax credit, (i) a refund received by the owner in respect of the tax credit, and (ii) any amount received by the owner in exchange for the transfer of the tax credit; and (b) means, in respect of a tax loss attributed to the owner in respect of the ownership interest, the product obtained by multiplying the amount of the tax loss by the statutory income tax rate applicable to the owner in the jurisdiction where it is located. ( avantage fiscal )