Global Minimum Tax Act — G-3.3 2
) an ownership interest in an investment entity that is subject to an election under subsection 42 (2); or (b) a dividend or other distribution received or accrued (i) to the extent that it can reasonably be considered to be interest or another amount in respect of a debt component of a financial instrument, or (ii) if it is (A) made by another group entity, and (B) treated as an expense for the purposes of determining the financial accounting income of the other group entity. ( dividendes exclus ) excluded entity has the same meaning as in subsection 13 (1). ( entité exclue ) excluded equity gain or loss , of a constituent entity for a fiscal year, means the gain, profit or loss included in the financial accounting income of the constituent entity for the fiscal year arising from (a) gains and losses from changes in the fair value of an ownership interest, or from the impairment of an ownership interest, except for an interest that is a portfolio holding at the end of the fiscal year; (b) profit or loss in respect of an ownership interest included under the equity method of accounting; or (c) gains and losses from a disposition of an ownership interest, except for a disposition of an interest that is a portfolio holding immediately before the disposition. ( profit ou perte sur capitaux propres exclu ) excluded taxes has the same meaning as in subsection 23 (2). ( impôts exclus ) filing constituent entity means (a) in respect of a qualifying MNE group for a fiscal year, a constituent entity of the MNE group that is (i) located in Canada and required to file a GIR with the Minister, in respect of the MNE group for the fiscal year, in accordance with subsection 60 (1) or 60 (2), (ii) a designated local entity (as appointed under paragraph 60 (3)(a)) for the fiscal year, or (iii) a qualifying foreign filing entity , as defined in subsection 55 (1), for the fiscal year; and (b) in respect of an investment subgroup, joint venture group, minority-owned subgroup or minority-owned investment subgroup that is included in a qualifying MNE group for a fiscal year, the constituent entity that files the GIR in respect of the MNE group for the fiscal year. ( entité constitutive déclarante ) financial accounting income has the same meaning as in subsection 17 (1). ( résultat net comptable ) financial accounting revenue has the same meaning as in subsection 33 (3). ( chiffre d’affaires comptable ) fiscal year , in respect of an MNE group, means (a) if paragraph (d) of the definition consolidated financial statements in this subsection applies in respect of the ultimate parent entity, the calendar year; and (b) in any other case, an accounting period for which the ultimate parent entity of an MNE group prepares its consolidated financial statements. ( année financière ) fiscally transparent , in respect of an entity, means that under the laws of a jurisdiction, the income, expenditure, profit or loss of the entity is treated as if it were derived or incurred by the owner of the entity in proportion to the owner’s interest in the entity. ( fiscalement transparent ) five-year election means an election, in respect of a particular fiscal year, to which the following rules apply: (a) the election applies to the particular fiscal year and, unless the election is revoked, each subsequent fiscal year; (b) the election cannot be revoked before the fifth fiscal year following the particular fiscal year; (c) if the election is revoked, no such election can subsequently be made until the fifth fiscal year following the revocation year; and (d) the election or any revocation of the election, as the case may be, must be made in the GIR for the first fiscal year in respect of which the election or revocation, as the case may be, is to be effective. ( choix pour cinq ans ) flow-through entity means an entity to the extent it (a) is fiscally transparent under the laws of the jurisdiction where it was created; and (b) is not subject to a covered tax on its inc