3‑180 Adjustment—Intragroup Financing Ar3‑180 Adjustment—Intragroup Financing Arrangements

3‑180 Adjustment—Intragroup Financing Arrangements

(1) In computing the GloBE Income or Loss for a Fiscal Year of a Constituent Entity of an MNE Group that is a Low‑Tax Entity for the Fiscal Year, adjust the Constituent Entity’s Financial Accounting Net Income or Loss for the Fiscal Year so as to exclude any expense attributable to an Intragroup Financing Arrangement for the Fiscal Year that can reasonably be anticipated, over the expected duration of the arrangement, to: (a) increase the amount of expenses taken into account in computing the GloBE Income or Loss of the Low‑Tax Entity for any Fiscal Year; and (b) not result in a corresponding increase in the taxable income of another Constituent Entity of the MNE Group that is a High‑Tax Counterparty for the Fiscal Year. (2) For the purposes of subsection (1), in determining whether a Constituent Entity is a Low‑Tax Entity for the Fiscal Year, disregard that subsection. (3) For the purposes of paragraph (1)(b), disregard an amount of increase if: (a) the High‑Tax Counterparty is eligible for an exclusion, exemption, deduction, credit or other tax benefit under local law; and (b) it can reasonably be considered that the benefit is calculated by reference to the amount of the increase.