2‑45 Meaning of UTPR Top‑up Tax Amount2‑45 Meaning of UTPR Top‑up Tax Amount

2‑45 Meaning of UTPR Top‑up Tax Amount

(1) Subsection (2) applies if a Constituent Entity of an Applicable MNE Group for a Fiscal Year is located in Australia. (2) The Constituent Entity has a UTPR Top‑up Tax Amount for the Fiscal Year if: (a) the Total UTPR Top‑up Tax Amount for the Applicable MNE Group for the Fiscal Year is greater than zero; and (b) an amount of the Total UTPR Top‑up Tax Amount is allocated to Australia under section 2‑60; and (c) an amount of that allocated amount is distributed to the Constituent Entity under section 2‑70. (3) Subsection (4) applies if: (a) a Constituent Entity for a Fiscal Year of an Applicable MNE Group for the Fiscal Year is a Permanent Establishment of a Main Entity; and (b) the Constituent Entity is located in Australia for the Fiscal Year; and (c) the Main Entity is not located in Australia for the Fiscal Year. (4) If, disregarding this subsection, the Constituent Entity has a UTPR Top‑up Tax Amount for the Fiscal Year: (a) despite subsection (2), the Constituent Entity does not have a UTPR Top‑up Tax Amount for the Fiscal Year; and (b) the Main Entity has a UTPR Top‑up Tax Amount for the Fiscal Year. (5) For the purposes of subsections (2) and (4), the UTPR Top‑up Tax Amount is equal to the amount distributed to the Constituent Entity as mentioned in paragraph (2)(c). (6) To avoid doubt, if the Constituent Entity is an Investment Entity or Insurance Investment Entity, it does not have a UTPR Top‑up Tax Amount for the Fiscal Year.

Note 1: Under the formula in subsection 2‑70(3), an amount of the Australian allocated amount will not be distributed to such a Constituent Entity (see section 2‑85).

Note 2: If the Constituent Entity is Securitisation Entity, it will not have a UTPR Top‑up Tax Amount for the Fiscal Year unless the only Constituent Entities of the MNE Group that are located in its jurisdiction are Securitisation Entities (see paragraph 2‑85(2)(c)).