Global Minimum Tax Act — G-3.3 9
Definition of qualifying MNE group 9 (1) A qualifying MNE group for a particular fiscal year means an MNE group that meets the following conditions: (a) revenue reported in the consolidated financial statements of the ultimate parent entity of the MNE group is equal to or greater than the revenue threshold of the MNE group in at least two of the four fiscal years immediately preceding the particular fiscal year; and (b) the MNE group is not composed exclusively of excluded entities for the particular fiscal year. Definition of revenue threshold (2) The revenue threshold of an MNE group for a fiscal year means the amount determined by the formula A × B ÷ 365 where A is €750 million; and B is the number of days in the fiscal year. Revenue — pre-merger years (3) For the purposes of the definition qualifying MNE group in subsection (1) and subsection (4), if an MNE group is formed as a result of a merger in a particular fiscal year between a group, or an entity that is not included in a group immediately before the merger (referred to in this subsection as an “ungrouped entity”), and one or more other groups or ungrouped entities, then for any fiscal year preceding the particular fiscal year (referred to in this subsection as the “preceding year”) (a) all amounts that are the revenue or a portion of the revenue reported in the consolidated financial statements of the ultimate parent entity of any of those groups or in the financial statements of any of those ungrouped entities, as the case may be, and that correspond to any period included in the preceding year (with the revenue apportioned between periods, if necessary, on a just and reasonable basis) are to be aggregated; and (b) the aggregate amount determined under paragraph (a) is deemed to be the revenue reported in the consolidated financial statements of the ultimate parent entity of the MNE group for the preceding year. Qualifying MNE group — demerger (4) If there is a demerger of an MNE group that was a qualifying MNE group in the fiscal year immediately preceding the fiscal year in which the demerger occurs and any of the groups resulting from the demerger is an MNE group (referred to in this subsection as a “demerged MNE group”), the condition in paragraph (a) of the definition qualifying MNE group in subsection (1) is deemed to be satisfied in respect of the demerged MNE group for (a) the first fiscal year of the demerged MNE group ending after the demerger occurs (referred to in this paragraph as the “first post-demerger year”), if the revenue reported in the consolidated financial statements of the ultimate parent entity of the demerged MNE group for the first post-demerger year is greater than or equal to the amount determined by the formula A × B ÷ 365 where A is €750 million, and B is the number of days in the first post-demerger year; and (b) any fiscal year (referred to in this paragraph as the “tested year”) among the three fiscal years of the demerged MNE group immediately following the first post-demerger year, if the revenue reported in the consolidated financial statements of the ultimate parent entity of the demerged MNE group for at least two out of the tested year and any other fiscal years of the demerged MNE group ending before the tested year and after the demerger (the tested year and each of those other years referred to in this paragraph as a “post-demerger year”) is greater than or equal to the amount determined by the formula A × C ÷ 365 where C is the number of days in the post-demerger year. Merger — meaning (5) For the purposes of subsection (3), a merger is any arrangement under which (a) all or substantially all of the entities of two or more groups are brought under common control such that those entities form a single group immediately following the conclusion of the arrangement; or (b) one or more entities that are not included in any group are brought under common control with another entity, or one or more groups of entities, such that