Document ID: chunk:federal_register_of_legislation:F2024L01740:front:0:p64
Version: federal_register_of_legislation:F2024L01740
Segment Type: other
Provision Reference: 
Character Range: 161379–164017

relates to:
 (a) an uncertain tax position; or
 (b) distributions from any Constituent Entity of the MNE Group (whether or not the Constituent Entity mentioned previously in this subsection).
 (2) An Unclaimed Accrual, of a Constituent Entity of an MNE Group for a Fiscal Year, means an increase in a deferred tax liability recorded in the financial accounts of the Constituent Entity for the Fiscal Year (the current year) if:
 (a) it is not expected to be reversed by the end of the fifth following Fiscal Year; and
 (b) an election under subsection (3) applies to the Constituent Entity for the current year.

Election
 (3) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified Constituent Entity.
 (4) An election under subsection (3) is an Annual Election.

Part 4‑5—The GloBE Loss Election
Note: The GloBE Loss Deferred Tax Asset of an MNE Group, or the GloBE Loss Deferred Tax Asset of an Ultimate Parent Entity of an MNE Group, to the extent that it is used, forms part of Additions to Covered Taxes under paragraph 4‑15(b) or (c).

4‑120  GloBE Loss Election
 (1) A GloBE Loss Election is:
 (a) an election under subsection (2) (a GloBE Loss Election for an MNE Group); or
 (b) an election under subsection 4‑130(1) (a GloBE Loss Election for an Ultimate Parent Entity).

GloBE Loss Election for an MNE Group
 (2) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction if:
 (a) the jurisdiction does not have an Eligible Distribution Tax System; and
 (b) the election is made in the first GloBE Information Return of the MNE Group for the first Fiscal Year in respect of which the following conditions are met:
 (i) a Constituent Entity of the MNE Group is located in the jurisdiction;
 (ii) subsection 8‑10(1) (Transitional CbCR Safe Harbour) does not apply in relation to the MNE Group, the jurisdiction and the Fiscal Year.
 (3) Unless the GloBE Loss Election for the MNE Group under subsection (2) 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
 (4) A Filing Constituent Entity for the MNE Group may revoke a GloBE Loss Election for the MNE Group made under subsection (2) of this section.
 (5) If the Filing Constituent Entity revokes a GloBE Loss Election for the MNE Group made under subsection (2), the election does not apply to:
 (a) the Fiscal Year for which