Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p66
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 166091–168714

purposes of this subsection if a GloBE Loss Election for the Ultimate Parent Entity of the MNE Group also applies to the Fiscal Year: see subsections 4‑135(3) and (4).

Reduction to zero
 (3) If a GloBE Loss Election for an MNE Group made under subsection 4‑120(2) that applies to a jurisdiction is revoked:
 (a) the GloBE Loss Deferred Tax Asset of the MNE Group for the jurisdiction is reduced to zero on the first day of the first Fiscal Year to which the GloBE Loss Election is no longer applicable; and
 (b) Parts 4‑4 and 9‑1 apply in respect of that and subsequent Fiscal Years to a Constituent Entity of the MNE Group that is located in the jurisdiction in the Fiscal Year.

4‑130  GloBE Loss Election for an Ultimate Parent Entity
 (1) A Filing Constituent Entity for an MNE Group may make an election for the Ultimate Parent Entity of an MNE Group under this subsection if:
 (a) the Ultimate Parent Entity is a Flow‑through Entity; and
 (b) the jurisdiction in which it is located does not have an Eligible Distribution Tax System; and
 (c) the election is made in the first GloBE Information Return of the MNE Group for the first Fiscal Year in respect of which subsection 8‑10(1) (Transitional CbCR Safe Harbour) does not apply in relation to the MNE Group, the jurisdiction and the Fiscal Year.
 (2) Unless the GloBE Loss Election for the Ultimate Parent Entity made under subsection (1) is revoked, it applies to:
 (a) the Fiscal Year for which the GloBE Information Return for the Applicable MNE Group that records the election is filed by the Filing Constituent Entity; and
 (b) each subsequent Fiscal Year.

Revocation
 (3) A Filing Constituent Entity for the MNE Group may revoke the GloBE Loss Election for the Ultimate Parent Entity made under subsection (1).
 (4) If the Filing Constituent Entity revokes a GloBE Loss Election for the Ultimate Parent Entity made under subsection (1), the election does not apply to:
 (a) the Fiscal Year for which the GloBE Information Return for the Applicable MNE Group that records the revocation is filed by the Filing Constituent Entity; and
 (b) each subsequent Fiscal Year.

4‑135  GloBE Loss Deferred Tax Asset of an Ultimate Parent Entity

Establishment and increase
 (1) If a GloBE Loss Election for an Ultimate Parent Entity of an MNE Group made under subsection 4‑130(1) applies to a Fiscal Year under subsection 4‑130(2):
 (a) Part 4‑4 does not apply to the Ultimate Parent Entity; and
 (b) if the Ultimate Parent Entity has a GloBE Loss for the Fiscal Year and a GloBE Loss Deferred Tax Asset of the Ultimate Parent Entity has not been established:
 (i) a