Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p42
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 105934–108534

(7).
 (6) If one or more Constituent Entities of the MNE Group located for the Look‑back Year in the jurisdiction have a Net Asset Gain for the application year, compute the remainder amount in accordance with the following formula:
where:
CE's gain means the Constituent Entity's Net Asset Gain for the application year.
remainder is the result of paragraph (3)(c).
total gain means the total of the amounts of Net Asset Gain of all Constituent Entities of the MNE Group located in the jurisdiction for the application year.
 (7) If subsection (6) does not apply, compute the remainder amount in accordance with the following formula:
where:
number of CEs means the total number of Constituent Entities of the MNE Group located in the jurisdiction for the Look‑back Year.
remainder is the result of paragraph (3)(c).

3‑170  Meaning of Aggregate Asset Gain, Net Asset Gain, etc
 (1) If the result of the disposition of Local Tangible Assets by all Constituent Entities of an MNE Group located in a jurisdiction, excluding any gain or loss on a transfer of assets between Group Members, is a net gain in a Fiscal Year, then the MNE Group has an Aggregate Asset Gain for the jurisdiction for the Fiscal Year of the amount of that net gain.
 (2) If the result of the disposition of Local Tangible Assets by a Constituent Entity of the MNE Group located in a jurisdiction, excluding any gain or loss on a transfer of assets between Group Members, is:
 (a) a net gain in a Fiscal Year—then the Constituent Entity has a Net Asset Gain for the Fiscal Year of that amount; and
 (b) a net loss in a Fiscal Year—then the Constituent Entity has a Net Asset Loss for the Fiscal Year of that amount, expressed as a positive amount.
 (3) Local Tangible Asset, in relation to a Constituent Entity located in a jurisdiction, means immovable property located in the jurisdiction.

3‑175  Meaning of Look‑back Period and Loss Year
 (1) The Look‑back Period, of an election for an MNE Group under subsection 3‑155(2), means the Fiscal Year to which the election applies (the application year) and the 4 Fiscal Years immediately preceding it.
 (2) A Loss Year, in relation to an election for an MNE Group under subsection 3‑155(2), means a Fiscal Year in the Look‑back Period of the election if both of the following apply in relation to the Fiscal Year:
 (a) a Constituent Entity of the MNE Group located in the jurisdiction to which the election applies has an adjusted Net Asset Loss for the Fiscal Year greater than zero (see subsection (3) of this section);
 (b) the sum of adjusted Net Asset Losses for the Fiscal