Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p103
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 257653–260371

7‑55  Deemed Distribution Tax Recapture Account
 (1) This section applies if, at the end of a Fiscal Year (the current year), there are one or more Deemed Distribution Tax Recapture Accounts for a jurisdiction for an MNE Group for earlier Fiscal Years.
 (2) At the end of the current year, reduce the balance of the Deemed Distribution Tax Recapture Accounts in accordance with the following subsections.
 (3) Make reductions under subsection (4) to the balance of a Deemed Distribution Tax Recapture Account for an earlier Fiscal Year before making a reduction under subsection (4) to the balance of a Deemed Distribution Tax Recapture Account for a later Fiscal Year.
 (4) Reduce the balance of a Deemed Distribution Tax Recapture Account by applying amounts mentioned in paragraphs (a), (b) and (c) as follows:
 (a) first, reduce that balance by applying the amount of Taxes mentioned in paragraph 4‑40(1)(b) paid by the Constituent Entities of the MNE Group located in the jurisdiction during the current year in relation to actual or deemed distributions;
 (b) next, reduce that balance by applying the amount that is:
 (i) the Net GloBE Loss (if any) for the current year of the MNE Group for the jurisdiction;
  multiplied by:
 (ii) the Minimum Rate;
 (c) next, if there are one or more Recapture Account Loss Carry‑forwards for the jurisdiction for the MNE Group for earlier Fiscal Years, reduce that balance by applying the amount of those Recapture Account Loss Carry‑forwards.
 (5) However, do not apply an amount mentioned in paragraph (4)(a), (b) or (c) to the extent that doing so would reduce the balance of the Deemed Distribution Tax Recapture Account below zero.
 (6) For the purposes of paragraph (4)(c), apply an amount of a Recapture Account Loss Carry‑forward for an earlier Fiscal Year before applying an amount of a Recapture Account Loss Carry‑forward for a later Fiscal Year.

7‑60  Recapture Account Loss Carry‑forward
 (1) Subsection (2) applies if:
 (a) there is a Net GloBE Loss for a Fiscal Year of an MNE Group for a jurisdiction; and
 (b) at the end of the Fiscal Year, the amount mentioned in paragraph 7‑55(4)(b) (Net GloBE Loss for current year multiplied by Minimum Rate) in respect of that Net GloBE Loss has not been applied fully under subsection 7‑55(4); and
 (c) there is at least one Deemed Distribution Tax Recapture Account for the jurisdiction for the MNE Group for an earlier Fiscal Year.
 (2) At the end of the Fiscal Year:
 (a) a Recapture Account Loss Carry‑forward is established for the Fiscal Year for the jurisdiction for the MNE Group; and
 (b) the balance of the Recapture Account Loss Carry‑forward is the amount mentioned in paragraph 7‑55(4)(b), to the extent