Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p43
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 108307–111026

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 Year of all Constituent Entities of the MNE Group located in that jurisdiction exceeds the sum of the Net Asset Gains for the Fiscal Year of all those Constituent Entities.
 (3) For the purposes of subsection (2), the adjusted Net Asset Loss for a Fiscal Year of a Constituent Entity of the MNE Group located in the jurisdiction is:
 (a) the Net Asset Loss of the Constituent Entity for the Fiscal Year;
reduced by:
 (b) so much of that Net Asset Loss as has already been applied under paragraph 3‑165(3)(c) in respect of an election that applies to a Fiscal Year that is before the application year.

3‑180  Adjustment—Intragroup Financing Arrangements
 (1) In computing the GloBE Income or Loss for a Fiscal Year of a Constituent Entity of an MNE Group that is a Low‑Tax Entity for the Fiscal Year, adjust the Constituent Entity's Financial Accounting Net Income or Loss for the Fiscal Year so as to exclude any expense attributable to an Intragroup Financing Arrangement for the Fiscal Year that can reasonably be anticipated, over the expected duration of the arrangement, to:
 (a) increase the amount of expenses taken into account in computing the GloBE Income or Loss of the Low‑Tax Entity for any Fiscal Year; and
 (b) not result in a corresponding increase in the taxable income of another Constituent Entity of the MNE Group that is a High‑Tax Counterparty for the Fiscal Year.
 (2) For the purposes of subsection (1), in determining whether a Constituent Entity is a Low‑Tax Entity for the Fiscal Year, disregard that subsection.
 (3) For the purposes of paragraph (1)(b), disregard an amount of increase if:
 (a) the High‑Tax Counterparty is eligible for an exclusion, exemption, deduction, credit or other tax benefit under local law; and
 (b) it can reasonably be considered that the benefit is calculated by reference to the amount of the increase.

3‑185  Meaning of Intragroup Financing Arrangement
  An Intragroup Financing Arrangement for a Fiscal Year is an arrangement in respect of which all of the following apply:
 (a) the arrangement is entered into between 2 or more Constituent Entities of an MNE Group;
 (b) under the arrangement, one of the Constituent Entities (the investor) directly or indirectly provides credit to, or otherwise makes an investment in, another of the Constituent Entities (the recipient);
 (c) the investor is a High‑Tax Counterparty for the Fiscal Year;
 (d) the recipient is a Low‑Tax Entity for the Fiscal Year.

3‑190  Meaning of Low‑Tax