Global Minimum Tax Act — G-3.3 32
e asset amount of a standard constituent entity for a fiscal year means the amount determined by the formula (A + B) ÷ 2 where A is the total of all amounts each of which is the carrying value of an eligible tangible asset of the standard constituent entity at the start of the fiscal year; and B is the total of all amounts each of which is the carrying value of an eligible tangible asset of the standard constituent entity at the end of the fiscal year. Eligible tangible asset amount — main entity limitation (10) The eligible tangible asset amount for a fiscal year of a standard constituent entity that is a main entity in respect of a permanent establishment is not to include any amount in respect of the carrying value of an eligible tangible asset held by the standard constituent entity to the extent that the eligible tangible asset is reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2). Eligible tangible asset amount — flow-through entity allocation (11) If an amount would, in the absence of this subsection, be included in the eligible tangible asset amount, for a fiscal year, of a constituent entity that is a flow-through entity, the rules in subsection (5) apply in respect of the amount, except that any reference in that subsection to “eligible payroll costs” is to be read as a reference to “eligible tangible asset amount”. Eligible tangible asset amount — deductible dividend regime (12) If an amount would, in the absence of this subsection, be included in the eligible tangible asset amount, for a fiscal year, of a constituent entity that is subject to a deductible dividend regime, subsection (6) applies in respect of the amount, except that any reference in that subsection to “eligible payroll costs” is to be read as a reference to “eligible tangible asset amount”. Eligible tangible asset amount — taxable distribution method (13) If an amount would, in the absence of this subsection, be included in the eligible tangible asset amount, for a fiscal year, of a constituent entity an ownership interest in which is subject to an election under subsection 42 (2), subsection (7) applies in respect of the amount, except that any reference in that subsection to “eligible payroll costs” is to be read as a reference to “eligible tangible asset amount”. Definition of eligible tangible asset (14) An eligible tangible asset of a constituent entity at a particular time means an asset that is (a) held at the particular time by (i) if the constituent entity is a permanent establishment, the main entity in respect of the permanent establishment, and (ii) in any other case, the constituent entity; (b) if the constituent entity is a permanent establishment, reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17 (1)(b)(ii)(B) or subsection 17 (2) for the fiscal year that includes the particular time; (c) any of the following: (i) property, plant or equipment, (ii) natural resources, (iii) if the constituent entity is the lessee, a right-of-use asset in respect of the lease of a tangible asset, (iv) if the constituent entity is the lessor, property, all or any portion of which is leased out to a person under an operating lease, or (v) a licence from, or similar arrangement with, a government if (A) the licence or arrangement is for the use of immovable property or exploitation of natural resources, and (B) the use of the property or exploitation of the resources entails significant investment in tangible assets; and (d) none of the following: (i) property that is held for sale, lease or investment, or, if the constituent entity is the lessee, that is leased out to a person under a finance lease, (ii) a tangible asset used in the generation of core international shipping income in the fiscal year that includes the particular time, (iii) if the constituent entity is a permanent establishm