4‑35 Additional Current Top‑up Tax under4‑35 Additional Current Top‑up Tax under section 4‑30—Excess Negative Tax Expense Carry‑forward

4‑35 Additional Current Top‑up Tax under section 4‑30—Excess Negative Tax Expense Carry‑forward

(1) Subsection (2) applies if: (a) disregarding subsection (2), there is an amount of Additional Current Top‑up Tax of the MNE Group for the Fiscal Year for the jurisdiction, in respect of that Fiscal Year, under subsection 4‑30(3); and (b) an election for the MNE Group under subsection (4) of this section applies to the jurisdiction for the Fiscal Year. (2) Despite subsection 4‑30(3), the amount of Additional Current Top‑up Tax of the MNE Group for the Fiscal Year for the jurisdiction, in respect of that Fiscal Year, under that subsection is taken to be reduced to: (a) unless paragraph (b) of this subsection applies—nil; or (b) if some or all of that amount of Additional Current Top‑up Tax (computed disregarding this paragraph) is attributable to a tax loss that: (i) was carried back from that Fiscal Year to a prior Fiscal Year; and (ii) was deducted for the prior Fiscal Year under the tax law of the jurisdiction; that amount of Additional Current Top‑up Tax, to the extent that is attributable to the tax loss. (3) If subsection (2) applies: (a) where an Excess Negative Tax Expense Carry‑forward has not been established for the MNE Group for the jurisdiction: (i) an Excess Negative Tax Expense Carry‑forward is established for the MNE Group for the jurisdiction; and (ii) the balance of the Excess Negative Tax Expense Carry‑forward is increased by the amount of the reduction under subsection (2); or (b) otherwise—the balance of Excess Negative Tax Expense Carry‑forward for the MNE Group for the jurisdiction is increased by the amount of the reduction under subsection (2).

Note 1: In some circumstances, the balance of the Excess Negative Tax Expense Carry‑forward is applied to reduce the sum of Adjusted Covered Taxes in relation to the jurisdiction mentioned in paragraph 5‑5(2)(a): see subsection 5‑5(4).

Note 2: The balance of the Excess Negative Tax Expense Carry‑forward may also be increased under section 5‑10.

Election (4) 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. (5) An election under subsection (4) is an Annual Election.