4‑120 GloBE Loss Election4‑120 GloBE Loss Election

4‑120 GloBE Loss Election

(1) A GloBE Loss Election is: (a) an election under subsection (2) (a GloBE Loss Election for an MNE Group); or (b) an election under subsection 4‑130(1) (a GloBE Loss Election for an Ultimate Parent Entity). GloBE Loss Election for an MNE Group (2) A Filing Constituent Entity for an MNE Group may make an election for the MNE Group under this subsection that applies to a specified jurisdiction if: (a) the jurisdiction does not have an Eligible Distribution Tax System; and (b) the election is made in the first GloBE Information Return of the MNE Group for the first Fiscal Year in respect of which the following conditions are met: (i) a Constituent Entity of the MNE Group is located in the jurisdiction; (ii) subsection 8‑10(1) (Transitional CbCR Safe Harbour) does not apply in relation to the MNE Group, the jurisdiction and the Fiscal Year. (3) Unless the GloBE Loss Election for the MNE Group under subsection (2) is revoked, it applies to: (a) the Fiscal Year for which the GloBE Information Return for the Applicable MNE Group that records the election is filed by the Filing Constituent Entity; and (b) each subsequent Fiscal Year. Revocation (4) A Filing Constituent Entity for the MNE Group may revoke a GloBE Loss Election for the MNE Group made under subsection (2) of this section. (5) If the Filing Constituent Entity revokes a GloBE Loss Election for the MNE Group made under subsection (2), the election does not apply to: (a) the Fiscal Year for which the GloBE Information Return for the Applicable MNE Group that records the revocation is filed by the Filing Constituent Entity; and (b) each subsequent Fiscal Year.