5‑10 Effective Tax Rate—Excess Negative 5‑10 Effective Tax Rate—Excess Negative Tax Expense administrative procedure

5‑10 Effective Tax Rate—Excess Negative Tax Expense administrative procedure

(1) Subsection (2) applies if, disregarding that subsection, the sum of the Adjusted Covered Taxes mentioned in paragraph 5‑5(2)(a) is less than zero. (2) For the purposes of subsection 5‑5(2), treat that sum as being zero. (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 absolute value of the sum mentioned in subsection (1); or (b) otherwise—the balance of Excess Negative Tax Expense Carry‑forward for the MNE Group for the jurisdiction is increased by the absolute value of the sum mentioned in subsection (1).

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 4‑35(3).