187. Joint Ventures

Terms defined in s 157

• Allocable Share of the Multinational Top-up Tax

  Allocable Share of the Multinational Top-up Tax

  Defined · s 157

  “Allocable Share of the Multinational Top-up Tax” means an amount determined under subsection 162(1);

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• 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;

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• Group

  Group

  Defined · s 157

  “Group” means— (a) a collection of Entities that are related through ownership or control such that the assets, liabilities, income, expenses and cash flows of those Entities are— (i) included in the Consolidated Financial Statements of the Ultimate Parent Entity; or Finance (No. 2) (ii) excluded from the Consolidated Financial Statements of the Ultimate Parent Entity solely on size or materiality grounds, or on the grounds that the Entity is held for sale; or (b) an Entity 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 mentioned in paragraph (a);

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• 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;

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• Joint Venture

  Joint Venture

  Defined · s 157

  “Joint Venture” means an Entity whose financial results are reported under the equity method in the Consolidated Financial Statements of the Ultimate Parent Entity provided that the Ultimate Parent Entity holds directly or indirectly at least fifty per cent of its Ownership Interests and does not include— (a) an Ultimate Parent Entity of a Multinational Enterprise Group that is subject to this Part; (b) an Excluded Entity mentioned in paragraphs (a) to (f) of the definition of “Excluded Entity”; (c) an Entity whose Ownership Interest held by the Multinational Enterprise Group are held directly through an Excluded Entity referred in paragraphs (a) to (f) of the definition of “Excluded Entity” and the Entity— (i) operates exclusively or almost exclusively to hold assets or invest funds for the benefit of its investors; (ii) carries out activities that are ancillary to those carried out by the Excluded Entity; or Finance (No. 2) (iii) substantially all of its income is excluded from the computation of GloBE Income or Loss in accordance with paragraphs 165(1)(b) and (c); (d) an Entity which is held by a Multinational Enterprise Group composed exclusively of Excluded Entities; or (e) a Joint Venture Subsidiary;

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• Joint Venture Group

  Joint Venture Group

  Defined · s 157

  “Joint Venture Group” means a Joint Venture and its Joint Venture Subsidiaries;

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• Joint Venture Subsidiary

  Joint Venture Subsidiary

  Defined · s 157

  “Joint Venture Subsidiary” means an Entity whose assets, liabilities, income, expenses and cash flows are consolidated by a Joint Venture under an Acceptable Financial Accounting Standard (or would have been consolidated had it been required to consolidate such items in accordance with an Acceptable Financial Accounting Standard);

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• Main Entity

  Main Entity

  Defined · s 157

  “Main Entity” means, in respect of a Permanent Establishment— (a) the Entity that includes the Financial Accounting Net Income or Loss of the Permanent Establishment in its financial statements; and (b) is deemed to have the Controlling Interests of its Permanent Establishment;

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• 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)

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• 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;

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• 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;

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• Permanent Establishment

  Permanent Establishment

  Defined · s 157

  “Permanent Establishment” means— (a) a place of business including a deemed place of business situated in a jurisdiction and treated as a permanent establishment in accordance with an applicable Tax Treaty in force provided that such jurisdiction taxes the income attributable to it in accordance with a provision similar to Article 7 of the OECD Model Tax Convention; (b) if there is no applicable Tax Treaty in force, a place of business including a deemed place of business in respect of which a jurisdiction taxes under its domestic law the income attributable to such place of business on a net basis similar to the manner in which it taxes its own tax residents; (c) if a jurisdiction has no corporate income tax system, a place of business including a deemed place of business situated in that jurisdiction that would be treated as a permanent establishment in accordance Finance (No. 2) with the OECD Model Tax Convention provided that such jurisdiction would have had the right to tax the income attributable to it in accordance with Article 7 of that model; or (d) a place of business or a deemed place of business that is not already described in paragraphs (a) to (c) through which operations are conducted outside the jurisdiction where the Entity is located provided that such jurisdiction exempts the income attributable to such operations;

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• 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;

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• Tax

  Tax

  Defined · s 157

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

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• 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;

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