Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p109
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 272525–275289

Entity of the MNE Group for the Investment Entity for the Fiscal Year.
Note: In computing that Inclusion Ratio, treat the Investment Entities as the only Constituent Entities of the MNE Group (see section 7‑100).
 (2) For the purposes of this section, treat the Investment Entity as a Low‑Taxed Constituent Entity.
 (3) For the purposes of this section:
 (a) treat references in section 2‑15 to GloBE Income as references to GloBE Income or Loss; and
 (b) treat the reference in paragraph 2‑15(2)(a) to net income as a reference to net income or loss.

Division 4—Top‑up Tax of non‑Investment Entity

7‑115  Top‑up Tax of Constituent Entity that is not Investment Entity
 (1) Treat the Investment Entities mentioned in subsection 7‑80(1) as not being Constituent Entities of the MNE Group, for the purposes of:
 (a) computing the Top‑up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group; and
 (b) determining whether each Constituent Entity (other than an Investment Entity) of the MNE Group is a Low‑Taxed Constituent Entity.
 (2) Paragraph (1)(a) does not affect the operation of Chapters 2, 3, 4 (other than sections 4‑30 and 4‑35, and Parts 4‑5 and 4‑6), 6, 8 and 9 to the extent that they affect the application of Chapter 5 for the purposes of computing the Top‑up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group.
 (3) Subsection (4) applies if a Constituent Entity of the MNE Group that is not an Investment Entity has an amount payable for a Fiscal Year in respect of an Investment Entity under a Qualified Domestic Minimum Top‑up Tax of a jurisdiction.
 (4) In computing the Jurisdictional Top‑up Tax of the MNE Group for the jurisdiction under section 5‑30, treat the amount as not being an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction (see definition of Domestic Top‑up Tax in that section).
Note: The amount is treated as an amount payable by the Investment Entity: see subsection 7‑105(4).

Part 7‑5—Investment Entity tax transparency election

7‑120  Application of this Part
  This Part applies in relation to an Insurance Investment Entity in the same way that it applies in relation to an Investment Entity.

7‑125  Investment Entity tax transparency election
 (1) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to:
 (a) a specified Constituent Entity of the MNE Group, if the Constituent Entity is an Investment Entity; and
 (b) one or more specified Constituent Entity‑owners of the Investment Entity.
 (2) An election under subsection (1) is a Five‑Year Election.

7‑130  Effect of election—Investment Entity treated as Tax Transparent Entity