Document ID: chunk:federal_register_of_legislation:C2024A00132:section:26
Version: federal_register_of_legislation:C2024A00132
Segment Type: section
Provision Reference: s 26
Character Range: 26124–27473

26  Joint Ventures
 (1) An Entity is a Joint Venture of an MNE Group if:
 (a) the Entity's financial results are reported under the equity method in the Consolidated Financial Statements of the Ultimate Parent Entity of the MNE Group for the Fiscal Year; and
 (b) the Ultimate Parent Entity's Ownership Interest Percentage in the Entity is at least 50%.
 (2) However, the Entity is not a Joint Venture of an MNE Group if any of the following applies:
 (a) the Entity is the Ultimate Parent Entity of an Applicable MNE Group;
 (b) the Entity is an Excluded Entity under paragraph 20(1)(a), (b), (c), (d), (e) or (f);
 (c) in a case where the Group Entities of the MNE Group that hold Direct Ownership Interests in the Entity (the Excluded Entity owners) are Excluded Entities mentioned in paragraph (b) of this subsection—any of the following applies:
 (i) the Entity operates exclusively or almost exclusively to hold assets or invest funds for the benefit of the holders of Direct Ownership Interests in the Entity;
 (ii) the Entity only carries out activities that are ancillary to those carried out by the Excluded Entity owners;
 (iii) the Entity is of a kind prescribed by the Rules for the purposes of this subparagraph;
 (d) the MNE Group is comprised exclusively of Excluded Entities;
 (e) the Entity is a JV Subsidiary of a Joint Venture.