Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p15
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 38271–40886

subsection 41(3) or 42(3) of the Act; or
 (iii) is a Permanent Establishment in relation to which paragraph 19(1)(d) of the Act applies, and is a place of business (including a deemed place of business) in Australia.
 (8) Assume that section 4‑75 (Allocation of amounts in respect of Passive Income) were omitted.

2‑40  Domestic Top‑up Tax Amount—special rule for consolidated groups
 (1) Subsection (2) applies if a Constituent Entity of an MNE Group is a subsidiary member of a consolidated group.
 (2) Despite section 2‑30, the Constituent Entity's Domestic Top‑up Tax Amount for the Fiscal Year is taken to be reduced to zero.
 (3) Subsection (4) applies if the Constituent Entity is the head company of a consolidated group.
 (4) The amount of the Constituent Entity's Domestic Top‑up Tax Amount for the Fiscal Year is taken to be increased by the amount of each reduction under subsection (2) of this section (if any) in respect of a subsidiary member of the consolidated group.
 (5) This section applies in relation to a MEC group in the same way in which it applies in relation to a consolidated group.
 (6) The following terms have the same meaning in this section as they do in the Income Tax Assessment Act 1997:
 (a) consolidated group;
 (b) head company;
 (c) MEC group;
 (d) subsidiary member.

Part 2‑5—UTPR Top‑up Tax Amount

2‑45  Meaning of UTPR Top‑up Tax Amount
 (1) Subsection (2) applies if a Constituent Entity of an Applicable MNE Group for a Fiscal Year is located in Australia.
 (2) The Constituent Entity has a UTPR Top‑up Tax Amount for the Fiscal Year if:
 (a) the Total UTPR Top‑up Tax Amount for the Applicable MNE Group for the Fiscal Year is greater than zero; and
 (b) an amount of the Total UTPR Top‑up Tax Amount is allocated to Australia under section 2‑60; and
 (c) an amount of that allocated amount is distributed to the Constituent Entity under section 2‑70.
 (3) Subsection (4) applies if:
 (a) a Constituent Entity for a Fiscal Year of an Applicable MNE Group for the Fiscal Year is a Permanent Establishment of a Main Entity; and
 (b) the Constituent Entity is located in Australia for the Fiscal Year; and
 (c) the Main Entity is not located in Australia for the Fiscal Year.
 (4) If, disregarding this subsection, the Constituent Entity has a UTPR Top‑up Tax Amount for the Fiscal Year:
 (a) despite subsection (2), the Constituent Entity does not have a UTPR Top‑up Tax Amount for the Fiscal Year; and
 (b) the Main Entity has a UTPR Top‑up Tax Amount for the Fiscal Year.
 (5) For the purposes of subsections (2) and (4), the UTPR Top‑up Tax Amount is equal to the