10‑50 Deemed Flow‑through Entity and Tax

10‑50 Deemed Flow‑through Entity and Tax Transparent Entity

(1) Subsection (2) applies if a Constituent Entity: (a) is not a tax resident of any jurisdiction; and (b) is not subject to a Covered Tax or a Qualified Domestic Minimum Top‑up Tax based on its place of management, place of creation, or similar criteria. (2) For the purposes of this instrument, treat the Constituent Entity as a Flow‑through Entity and a Tax Transparent Entity in respect of its income, expenditure, profit or loss to the extent that: (a) its owners are located in a jurisdiction that treats the Entity as fiscally transparent; and (b) it does not have a place of business in the jurisdiction where it was created; and (c) the income, expenditure, profit or loss is not attributable to a Permanent Establishment in respect of which it is the Main Entity.