161. Application of Income Inclusion Rule

Terms defined in s 157

• Constituent Entity

  Constituent Entity

  Defined · s 157

  “Constituent Entity” means— (a) any Entity that is included in a Group; or (b) any Permanent Establishment of a Main Entity that is within paragraph (a) and which is treated as separate from the Main Entity and any other Permanent Establishment of that Main Entity, but does not include an Excluded Entity;

  Open s 157
• Controlling Interest

  Controlling Interest

  Defined · s 157

  “Controlling Interest” means an Ownership Interest in an Entity such that the interest holder— (a) is required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis in accordance with an Acceptable Financial Accounting Standard; or (b) would have been required to consolidate the assets, liabilities, income, expenses and cash flows of the Entity on a line-by-line basis if the interest holder had prepared Consolidated Financial Statements;

  Open s 157
• Financial Year

  Financial Year

  Defined · s 157

  “Financial Year” means an accounting period with respect to which the Ultimate Parent Entity of the Multinational Enterprise Group prepares its Consolidated Financial Statements and in the case of Consolidated Financial Statements as defined in paragraph (d) of the definition of “Consolidated Financial Statements”, Financial Year means the calendar year;

  Open s 157
• Income Inclusion Rule

  Income Inclusion Rule

  Defined · s 157

  “Income Inclusion Rule” means the rules for the allocation of Multinational Top-up Tax as provided in Chapter 4 of this Part;

  Open s 157
• Intermediate Parent Entity

  Intermediate Parent Entity

  Defined · s 157

  “Intermediate Parent Entity” means a Constituent Entity (other than an Ultimate Parent Entity, Partially-Owned Parent Entity, Permanent Establishment, or Investment Entity) which owns (directly or indirectly) an Ownership Interest in another Constituent Entity in the same Multinational Enterprise Group;

  Open s 157
• Low-Taxed Constituent Entity

  Low-Taxed Constituent Entity

  Defined · s 157

  “Low-Taxed Constituent Entity” means a Constituent Entity of the Multinational Enterprise Group that is located in a Low-Tax Jurisdiction or a Stateless Constituent Entity that, in respect of a Financial Year, has GloBE Income and is subject to an Effective Tax Rate as determined under Chapter 7 of this Part in that Financial Year that is lower than the Minimum Rate;

  Open s 157
• Multinational Enterprise Group

  Multinational Enterprise Group

  Defined · s 157

  “Multinational Enterprise Group” means any Group that includes at least one Entity or Permanent Establishment that is not located in the jurisdiction of the Ultimate Parent Entity; Finance (No. 2)

  Open s 157
• Multinational Top-up Tax

  Multinational Top-up Tax

  Defined · s 157

  “Multinational Top-up Tax” means tax computed for the jurisdiction or Constituent Entity in accordance with sections 175 to 179;

  Open s 157
• Ownership Interest

  Ownership Interest

  Defined · s 157

  “Ownership Interest” means any equity interest that carries rights to the profits, capital or reserves of an Entity, including the profits, capital or reserves of a Main Entity’s Permanent Establishment;

  Open s 157
• Parent Entity

  Parent Entity

  Defined · s 157

  “Parent Entity” means an Ultimate Parent Entity that is not an Excluded Entity, an Intermediate Parent Entity, or a Partially-Owned Parent Entity;

  Open s 157
• Partially-Owned Parent Entity

  Partially-Owned Parent Entity

  Defined · s 157

  “Partially-Owned Parent Entity” means a Constituent Entity other than an Ultimate Parent Entity, Permanent Establishment, Investment Entity or an Insurance Investment Entity that— (a) owns directly or indirectly an Ownership Interest in another Constituent Entity of the same Multinational Enterprise Group; and (b) has more than twenty per cent of the Ownership Interests in its profits held directly or indirectly by persons that are not Constituent Entities of the Multinational Enterprise Group;

  Open s 157
• Qualified Income Inclusion Rule

  Qualified Income Inclusion Rule

  Defined · s 157

  “Qualified Income Inclusion Rule” means a set of rules equivalent to Article 2.1 to Article 2.3 of the GloBE Model Rules including any provisions of the GloBE Model Rules associated with those articles that are included in the domestic law of a jurisdiction and that are implemented and administered in a way that is consistent with the outcomes provided for under the GloBE Model Rules and the GloBE Rules Commentary provided that such jurisdiction does not provide any benefits that are related to such rules;

  Open s 157
• Tax

  Tax

  Defined · s 157

  “Tax” means a compulsory unrequited payment to General Government;

  Open s 157
• Ultimate Parent Entity

  Ultimate Parent Entity

  Defined · s 157

  “Ultimate Parent Entity” means either— (a) an Entity that— (i) owns directly or indirectly a Controlling Interest in any other Entity; and (ii) is not owned, with a Controlling Interest, directly or indirectly by another Entity; or (b) the Main Entity of a Group that is located in one jurisdiction and has one or more Permanent Establishments located in other jurisdictions provided that the Entity is not a part of another Group;

  Open s 157