Global Minimum Tax Act — G-3.3 18
 the economic and accounting effect of the hedging instrument (A) has not been transferred to another entity, if the particular constituent entity holds the hedging instrument, or (B) has been transferred to the particular constituent entity, if the particular constituent entity does not hold the hedging instrument; and (b) the election is a five-year election. Equity gain or loss inclusion — election (7) If the filing constituent entity elects, in respect of the group entities of the MNE group that are located in a jurisdiction, to include excluded equity gains or losses in computing GloBE income or loss for a fiscal year, the following rules apply: (a) despite subsection (4), the GloBE income or loss of a group entity that is located in the jurisdiction includes an excluded equity gain or loss of the entity for the fiscal year to the extent that (i) all of the following conditions are met: (A) the gain or loss is subject to covered taxes (as a taxable gain or allowable loss) in the jurisdiction, (B) the tax consequences of the taxable gain or allowable loss are reflected in the income tax expense in the group entity’s financial accounts, (C) in the case of a gain from a disposition of an ownership interest, the gain is not excluded, reduced, offset or otherwise effectively sheltered from tax under local law by reason of any exemption, exclusion, deduction, credit or other form of relief specific to the type of gain, (ii) in the case of a gain or loss described in paragraph (a) of the definition excluded equity gain or loss in subsection 2 (1) that is not subject to covered taxes in the jurisdiction, (A) gains or losses on the disposition of the ownership interest are subject to covered taxes in the jurisdiction, and (B) the income tax expense in the group entity’s financial accounts includes deferred tax expense in respect of the changes in fair value or impairments, and (iii) the gain or loss is in respect of an ownership interest that is not a qualified flow-through ownership interest (as defined in subsection 28 (1)); (b) the election is a five-year election; and (c) if the election is revoked, the revocation is not effective in respect of a particular ownership interest where a loss in respect of that particular ownership interest is included in computing a group entity’s GloBE income or loss because of this subsection. Included revaluation method gain or loss (8) GloBE income or loss, of a constituent entity for a fiscal year, includes any included revaluation method gain or loss of the constituent entity for the fiscal year. Asymmetric foreign currency gains and losses (9) If a constituent entity’s accounting functional currency is different from its tax functional currency, the constituent entity’s GloBE income or loss for a fiscal year (a) includes a particular amount of gain or loss to the extent that (i) the particular amount is (A) attributable to fluctuations in the exchange rate between the accounting functional currency and tax functional currency, (B) included in the computation of the constituent entity’s income for tax purposes, and (C) not included in the constituent entity’s financial accounting income, or (ii) the particular amount is (A) attributable to fluctuations in the exchange rate between the tax functional currency and another currency that is not the accounting functional currency, and (B) not included in the constituent entity’s financial accounting income (whether or not the particular amount is included in the constituent entity’s income for tax purposes); and (b) excludes a particular amount of gain or loss to the extent that (i) the particular amount is (A) attributable to fluctuations in the exchange rate between the accounting functional currency and tax functional currency, (B) included in the constituent entity’s financial accounting income, and (C) not included in the computation of the constituent entity’s income for tax purposes, or (ii) the particular amount is (A) attributable to fl