Global Minimum Tax Act — G-3.3 42
Definitions 42 (1) The following definitions apply in this section. 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 ) 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 ) undistributed net GloBE income , of an investment entity for a tested year, means the amount determined by the formula A − B where A is the investment entity’s GloBE income for the tested year (which, for greater certainty, does not include any amount deemed to be included in the investment entity’s GloBE income for that tested year because of clause (2)(d)(i)(A) or (2)(e)(i)(A)); and B is the total of all amounts, other than to the extent the amounts are taken into account as reductions in computing the undistributed net GloBE income of the investment entity for a previous tested year, each of which is (a) covered taxes paid or payable by the investment entity for the tested year, (b) a distribution or deemed distribution by the investment entity that is received by shareholders (other than other investment entities) in the testing period in respect of the tested year, (c) the investment entity’s GloBE loss for a fiscal year within the testing period in respect of the tested year, or (d) a GloBE loss of the investment entity for an election year that precedes the tested year, to the extent the loss was not taken into account as a reduction in computing the investment entity’s undistributed net GloBE income for any tested year preceding the tested year. ( revenu GloBE net non distribué ) Taxable distribution method election (2) If the filing constituent entity elects under this section in respect of a qualifying owner’s ownership interest in an investment entity or insurance investment entity (referred to in this section as the “investment entity”) and an election under subsection 41 (1) is not in effect in relation to that ownership interest, the following rules apply in respect of fiscal years to which the election applies (each referred to in this section as an “election year” or a “tested year”): (a) the election is a five-year election; (b) distributions and deemed distributions of amounts out of the investment entity’s GloBE income for an election year are included in computing the GloBE income or loss of the qualifying owner for the election year in which it receives the distribution; (c) any amount in respect of covered taxes paid or payable by the investment entity that is allowed as a credit against the tax liability of the qualifying owner, in respect of a distribution from the investment entity, arising in an election year is included for that election year in computing the qualifying owner’s (i) GloBE income or loss, and (ii) adjusted covered taxes; (d) for the particular election year that is the third fiscal year immediately following a tested year (i) for the purposes of subsection 15 (3), the GloBE income of the investment entity for the particular election year is deemed to be equal to the total of all amounts, each of which is (A) the proportionate share — of a qualifying owner in respect of whose ownership interest in the investment entity an election under this subsection a