3‑145 Adjustment—loss on transfer of pur3‑145 Adjustment—loss on transfer of purchased Non‑Marketable Transferable Tax Credits

3‑145 Adjustment—loss on transfer of purchased Non‑Marketable Transferable Tax Credits

(1) Subsection (2) applies if: (a) a Constituent Entity transferred a Non‑Marketable Transferable Tax Credit during a Fiscal Year; and (b) the Constituent Entity is not the person to whom the tax credit was originally granted; and (c) the transfer amount (see subsection (3)) is a negative number. (2) In computing the Constituent Entity’s GloBE Income or Loss for the Fiscal Year, adjust the Constituent Entity’s Financial Accounting Net Income or Loss for the Fiscal Year so as to include the transfer amount. (3) For the purposes of paragraph (1)(c) and subparagraph 4‑20(1)(c)(ii), the transfer amount is: (a) the sum of: (i) the amount of the tax credit that has been used by the Constituent Entity; and (ii) the amount (if any) received by the Constituent Entity in exchange for the transfer; reduced by: (b) the sum of: (i) the Constituent Entity’s purchase price of the tax credit; and (ii) each amount credited or refunded to the Constituent Entity mentioned in subsection 4‑20(2), as reduced by subsection 4‑20(3) (whether in the Fiscal Year or a previous Fiscal Year).

Note: If the transfer amount is a positive number, it is included in the Constituent Entity’s Reduction to Covered Taxes: see subparagraph 4‑20(1)(c)(ii).