Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p104
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 260119–262824

Year:
 (a) a Recapture Account Loss Carry‑forward is established for the Fiscal Year for the jurisdiction for the MNE Group; and
 (b) the balance of the Recapture Account Loss Carry‑forward is the amount mentioned in paragraph 7‑55(4)(b), to the extent that it has not been so applied.
 (3) Reduce a Recapture Account Loss Carry‑forward for a Fiscal Year for a jurisdiction for an MNE Group to the extent that it is applied under 7‑55(4)(c).

7‑65  Effect of positive balance of Deemed Distribution Tax Recapture Account after 4 Fiscal Years—reduce Adjusted Covered Taxes for original year
  If the balance of a Deemed Distribution Tax Recapture Account for a jurisdiction for an MNE Group for a Fiscal Year (the original year) is above zero at the end of the fourth subsequent Fiscal Year:
 (a) for the purposes of paragraph 5‑5(2)(a), in computing the Effective Tax Rate of the MNE Group for the jurisdiction for the original year, reduce the sum of the Adjusted Covered Taxes for the original year of each Constituent Entity of the MNE Group located in the jurisdiction by the amount of the balance; and
 (b) recalculate the Effective Tax Rate and Jurisdictional Top‑up Tax for the original year of the MNE Group for the jurisdiction in accordance with section 5‑95; and
 (c) reduce the balance of the Deemed Distribution Tax Recapture Account for the original year to zero.

7‑70  Distribution taxes excluded in Adjusted Covered Taxes
  In computing the Adjusted Covered Taxes for a Fiscal Year of the Constituent Entities of an MNE Group that are located in a jurisdiction, exclude the amount of Taxes mentioned in paragraph 4‑40(1)(b) paid in relation to actual or deemed distributions by those Constituent Entities during the Fiscal Year, to the extent this amount is applied under paragraph 7‑55(4)(a).

7‑75  Effect of Constituent Entity leaving jurisdiction, etc.
 (1) This section applies if, in a Fiscal Year (the departure year), a Constituent Entity of an MNE Group that is located in a jurisdiction:
 (a) ceases to be a Constituent Entity of the MNE Group; or
 (b) transfers substantially all of its assets outside the MNE Group or outside that jurisdiction.
 (2) If the balance of a Deemed Distribution Tax Recapture Account for an earlier Fiscal Year for that jurisdiction for the MNE Group is above zero at the end of the departure year:
 (a) for the purposes of section 4‑20, treat the amount of the balance as increasing the Reduction to Covered Taxes of the Constituent Entities of the MNE Group that are located in the jurisdiction for the earlier Fiscal Year; and
 (b) recalculate the Effective Tax Rate and Jurisdictional Top‑up Tax for the earlier Fiscal Year of the MNE Group for