Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p88
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 220289–222979

and a previous Fiscal Year ending after the demerger; or
 (ii) two of the Fiscal Years ending after the demerger and before the test year;
  the demerged Group has annual revenues equalling or exceeding its GloBE Threshold for the relevant year.
 (3) For the purposes of this section, a demerger means any arrangement under which the Group Entities of a Group are separated into 2 or more Groups that are no longer consolidated with the same Ultimate Parent Entity.

Part 6‑2—Constituent Entities joining and leaving an MNE Group

Division 1—Transfers of Ownership Interests

6‑15  Application of this Division
 (1) This Division applies if:
 (a) there is a transfer of Ownership Interests in an Entity (the target) in a Fiscal Year (the transfer year); and
 (b) any of the following situations result from the transfer:
 (i) the target becomes a Constituent Entity of an MNE Group (the acquiring MNE Group);
 (ii) the target ceases to be a Constituent Entity of an MNE Group (the disposing MNE Group).
Note: This Division does not apply if the transfer is treated and taxed as an asset sale by a relevant jurisdiction: see subsection 6‑50(2).
 (2) To avoid doubt, the situations mentioned in paragraph (1)(b) can arise where any of the following occur:
 (a) the target ceases to be a Constituent Entity of the disposing MNE Group and becomes a Constituent Entity of the acquiring MNE Group;
 (b) the target becomes a Constituent Entity of the acquiring MNE Group because the acquiring MNE Group is a new Group and the target becomes the Ultimate Parent Entity of the acquiring MNE Group.

6‑20  Target's assets etc. included in MNE Group's Consolidated Financial Statements
 (1) For the purposes of this instrument, if any portion of the target's assets, liabilities, income, expenses or cash flows are included on a line‑by‑line basis in the Consolidated Financial Statements of the Ultimate Parent Entity of the disposing MNE Group in the transfer year:
 (a) in applying this instrument in relation to the disposing MNE Group, treat the target as a Constituent Entity of that MNE Group for the transfer year; and
 (b) the rules set out in sections 6‑25 to 6‑45 apply.
 (2) For the purposes of this instrument, if any portion of the target's assets, liabilities, income, expenses or cash flows are included on a line‑by‑line basis in the Consolidated Financial Statements of the Ultimate Parent Entity of the acquiring MNE Group in the transfer year:
 (a) in applying this instrument in relation to the acquiring MNE Group, treat the target as a Constituent Entity of that MNE Group for the transfer year; and
 (b) the rules set out in sections 6‑25 to 6‑45 apply.
 (3) To avoid doubt, if