Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p127
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 318606–321477

an arrangement that results in more than one Constituent Entity of an MNE Group (the relevant Constituent Entities) including part or all of the same income tax expense in its:
 (a) Adjusted Covered Taxes; or
 (b) income tax expense used for the purposes of computing the MNE Group's Simplified ETR for the jurisdiction in which the Constituent Entity is located.
 (2) Despite subsection (1), an arrangement is not a duplicate tax recognition arrangement if the arrangement results in the income subject to the tax that gives rise to the income tax expense being included in the relevant financial statements of each relevant Constituent Entity.
 (3) Despite subsection (1), an arrangement is not a duplicate tax recognition arrangement if it arises solely because, in determining a relevant Constituent Entity's Adjusted Covered Taxes, the relevant Constituent Entity's income tax expense used for the purposes of computing the MNE Group's Simplified ETR does not require adjustments for income tax expenses that are allocated to another relevant Constituent Entity.

8‑135  Entities treated as Constituent Entities for purposes of this Subdivision
  For the purposes of this Subdivision, treat each of the following as a Constituent Entity of an MNE Group:
 (a) a Joint Venture of the MNE Group;
 (b) a JV Subsidiary of a Joint Venture of the MNE Group.

8‑140  Financial statements for purposes of this Subdivision
  For the purposes of this Subdivision, the financial statements of a Constituent Entity of an MNE Group are:
 (a) the financial statements used to compute the Constituent Entity's GloBE Income; or
 (b) the Qualified Financial Statements of the MNE Group to the extent they relate to the Constituent Entity.

8‑145  Financial statements—Flow‑through Entity
 (1) Subsection (2) applies to:
 (a) the financial statements of a Constituent Entity that is a Flow‑through Entity; and
 (b) the financial statements of its Constituent Entity‑owners.
 (2) For the purposes of this Subdivision, disregard an expense or loss in the Flow‑through Entity's financial statements to the extent that the expense or loss is included in the financial statements of its Constituent Entity‑owners.

8‑150  Arrangement treated as having been entered into after 15 December 2022
  For the purposes of this Subdivision, treat an arrangement as having been entered into after 15 December 2022 if:
 (a) the arrangement is amended or transferred after 15 December 2022; or
 (b) the performance of any rights or obligations at any time after 15 December 2022 under the arrangement differs from the performance of those rights or obligations on or before 15 December 2022 (including where payments are reduced or ceased with the effect of increasing the balance of a liability); or
 (c) there is a change in the accounting treatment with respect to the arrangement after 15 December