201. Information return by Constituent Entity

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;

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• Designated Filing Entity

  Designated Filing Entity

  Defined · s 157

  “Designated Filing Entity” means the Constituent Entity, other than the Ultimate Parent Entity, that has been appointed by the Multinational Enterprise Group to file the information return on behalf of the Multinational Enterprise Group;

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• Domestic Top-up Tax

  Domestic Top-up Tax

  Defined · s 157

  “Domestic Top-up Tax” means tax as provided under section 159;

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• Effective Tax Rate

  Effective Tax Rate

  Defined · s 157

  “Effective Tax Rate” means, in respect of a Multinational Enterprise Group, the sum of the Adjusted Covered Taxes of each Constituent Entity located in the jurisdiction divided by the Net GloBE Income of the jurisdiction for the Financial Year;

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• Entity

  Entity

  Defined · s 157

  “Entity” means— (a) any legal person (other than a natural person); or (b) an arrangement that prepares separate financial accounts, such as a partnership or trust;

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• GloBE Implementation Framework

  GloBE Implementation Framework

  Defined · s 157

  “GloBE Implementation Framework” means the procedures to be developed by the Inclusive Framework on Base Erosion and Profit Shifting in order to develop administrative rules, guidance, and procedures that will facilitate the coordinated implementation of this Part;

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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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• information return

  information return

  Defined · s 157

  “information return” means a return in the prescribed form as provided for under section 201;

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• Investment Entity

  Investment Entity

  Defined · s 157

  “Investment Entity” means— (a) an Investment Fund or a Real Estate Investment Vehicle; (b) an Entity that is at least ninety-five per cent owned directly by an Entity described in paragraph (a) or through a chain of such Entities and that operates exclusively or almost exclusively to hold assets or invest funds for the benefit of such Investment Entities; and (c) an Entity where at least eighty-five per cent of the value of the Entity is owned by an Entity referred to in paragraph (a) provided that substantially all of the Entity’s income is Excluded Dividends or Excluded Equity Gain or Loss that is excluded from the computation of GloBE Income or Loss in accordance with paragraph 165(1)(b) or (c);

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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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• 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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• 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;

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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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• Reporting Financial Year

  Reporting Financial Year

  Defined · s 157

  “Reporting Financial Year” means the Financial Year that is the subject of the information return or the Top-up Tax return;

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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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