Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p134
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 336543–339334

(or the creditors of another OECD Securitisation Entity); and
 (d) the Entity pays out all cash received from its assets to its creditors (or the creditors of another OECD Securitisation Entity), on an annual or more frequent basis, other than:
 (i) cash retained to meet an amount of profit required by the documentation of the Securitisation Arrangement mentioned in paragraph (a), for eventual distribution to equity holders (or equivalent); or
 (ii) cash reasonably required under the terms of the Securitisation Arrangement for either (or both) of the purposes specified in subsection (2); and
 (e) any profit referred to in subparagraph (d)(i) for a Fiscal Year is negligible relative to the revenues of the Entity for the Fiscal Year.
 (2) For the purposes of subparagraph (1)(d)(ii), the following purposes are specified:
 (a) to make provision for future payments which are required, or will likely be required, to be made by the Entity under the terms of the Securitisation Arrangement;
 (b) to maintain or enhance the creditworthiness of the Entity.

8‑220  Meaning of Securitisation Arrangement
 (1) A Securitisation Arrangement means an arrangement that satisfies the following conditions:
 (a) it is implemented for the purpose of pooling and repackaging a portfolio of assets (or exposures to assets) for investors in a manner that legally segregates one or more identified pools of assets;
 (b) it seeks through contractual agreements to limit the exposure of those investors to the risk of insolvency of an Entity holding the legally segregated assets by controlling the ability of identified creditors of that Entity (or of another Entity in the arrangement) to make claims against it through legally binding documentation entered into by those creditors.
 (2) However, if:
 (a) the Entity or the other Entity mentioned in paragraph (1)(b) is a Constituent Entity of an MNE Group; and
 (b) one or more investors mentioned in paragraph (1)(a) is also a Constituent Entity of the MNE Group;
the arrangement is not a Securitisation Arrangement.

Division 5—Transitional UTPR Safe Harbour

8‑225  Transitional UTPR Safe Harbour
 (1) Subsection (2) applies if an election for an MNE Group under subsection (3) applies to a Fiscal Year and the jurisdiction in which the Ultimate Parent Entity of the MNE Group is located (the UPE jurisdiction).
 (2) In computing the Total UTPR Top‑up Tax Amount for the MNE Group for the Fiscal Year, treat the following as being zero:
 (a) the Top‑up Tax for the Fiscal Year of each Low‑Taxed Constituent Entity for the Fiscal Year of the MNE Group that is located in the UPE jurisdiction;
 (b) if there are one or more Joint Ventures of the MNE Group—the Ultimate Parent Entity's Allocable Share of the Top‑up Tax of each Joint Venture, and of