Global Minimum Tax Act — G-3.3 47
Definitions — transitional CbCR safe harbour 47 (1) The following definitions apply in this section. 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 ) 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 ) 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 ) 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 ) 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, i