Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p123
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 308318–311217

each Constituent Entity‑owner of the non‑qualifying Investment Entity;
 (c) include a proportion of each non‑qualifying Investment Entity's associated taxes for the Fiscal Year in the associated taxes for the Fiscal Year of each Constituent Entity‑owner of the non‑qualifying Investment Entity;
 (d) exclude so much of each non‑qualifying Investment Entity's profit or loss before income tax, total revenues and associated taxes for the Fiscal Year as is attributable to Direct Ownership Interests in the non‑qualifying Investment Entity that are held by Entities that are not Group Entities of the MNE Group;
 (e) adjust the MNE Group's Profit (Loss) before Income Tax for the relevant jurisdictions as necessary to ensure that the income and associated taxes of each non‑qualifying Investment Entity are only taken into account in the MNE Group's Profit (Loss) before Income Tax for the jurisdictions of which the Constituent Entity‑owner is a CbCR Resident for the Fiscal Year.
For the purposes of paragraphs (a), (b) and (c), the proportion, for a particular Constituent Entity‑owner of a non‑qualifying Investment Entity, is the proportion of the Ownership Interests in the non‑qualifying Investment Entity held by the Constituent Entity‑owner.
 (4) If section 8‑10 applies in relation to the MNE Group, the jurisdictions in which the non‑qualifying Investment Entities are located, and the Fiscal Year, compute the Top‑up Tax of the non‑qualifying Investment Entities for the Fiscal Year in accordance with Parts 7‑4, 7‑5 and 7‑6. In doing so:
 (a) disregard section 8‑10; and
 (b) in computing amounts under Parts 7‑4, 7‑5 or 7‑6 in relation to the non‑qualifying Investment Entities for the Fiscal Year, take into account amounts only to the extent that they are attributable to the non‑qualifying Investment Entities.

Qualifying Investment Entities
 (5) Subsection (6) applies in relation to a Fiscal Year if:
 (a) a Constituent Entity of an MNE Group is an Investment Entity (the qualifying Investment Entity); and
 (b) an election under subsection (7) applies in relation to the qualifying Investment Entity and the Fiscal Year.
 (6) For the purposes of section 8‑10, treat the qualifying Investment Entity as being a Constituent Entity of the MNE Group that is not an Investment Entity.

Election
 (7) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified Constituent Entity of the MNE Group and a specified Fiscal Year covered by the Transition Period if:
 (a) the Constituent Entity is an Investment Entity; and
 (b) an election under subsection 7‑125(1) (Investment Entity Transparency Election) does not apply to the Investment Entity and the Fiscal Year; and
 (c) an election under subsection 7‑145(1) (Taxable Distribution Method Election) does not apply to the Investment Entity and the Fiscal Year;