Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p126
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 316134–318843

included in its taxable income is offset by a tax attribute (such as a loss carry forward or an unused interest carry forward) with respect to which a valuation adjustment or accounting recognition adjustment:
 (i) has been made; or
 (ii) would have been made if the adjustment determination were made without regard to the investor's ability to use the tax attribute with respect to any Hybrid Arbitrage Arrangement entered into after 15 December 2022; or
 (b) the provision of the credit or making of the investment that results in the expense or loss of the recipient mentioned in paragraph (1)(b):
 (i) gives rises to a taxable deduction or loss of a Constituent Entity of the MNE Group that is located in the same jurisdiction as the investor; and
 (ii) is not included as an expense or loss in determining the MNE Group's Profit (Loss) before Income Tax for the jurisdiction (including as a result of being an expense or loss in the financial statements of a Flow‑through Entity which is owned by a Constituent Entity of the MNE Group that is located in the jurisdiction of the investor).

8‑125  Meaning of duplicate loss arrangement
 (1) A duplicate loss arrangement is an arrangement that results in an expense or loss being included in the financial statements of a Constituent Entity of an MNE Group located in a jurisdiction to the extent that:
 (a) the expense or loss is also included as an expense or loss in the financial statements of another Constituent Entity of the MNE Group; or
 (b) the arrangement also gives rise to a duplicate amount that is deductible for purposes of determining the taxable income of another Constituent Entity of the MNE Group located in another jurisdiction.
 (2) Despite paragraph (1)(a), an arrangement is not a duplicate loss arrangement to the extent that the amount of the expense or loss is offset against revenue which is included in the financial statements of both Constituent Entities.
 (3) Despite paragraph (1)(b), an arrangement is not a duplicate loss arrangement to the extent that the amount of the expense or loss is offset against revenue or income which is included in both:
 (a) the financial statements of the Constituent Entity including the expense or loss in its financial statements; and
 (b) the taxable income of the Constituent Entity claiming the deduction for the relevant expense or loss.

8‑130  Meaning of duplicate tax recognition arrangement
  (1) A duplicate tax recognition arrangement is 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