5‑35 Certain amounts of Domestic Top‑up 5‑35 Certain amounts of Domestic Top‑up Tax disregarded

5‑35 Certain amounts of Domestic Top‑up Tax disregarded

(1) This section applies if either of the following applies to all or part of an amount payable (the disputed amount) by a Constituent Entity of an MNE Group under a Qualified Domestic Minimum Top‑up Tax of a jurisdiction for a Fiscal Year: (a) a Constituent Entity of the MNE Group objects to paying the disputed amount in judicial or administrative proceedings under a law of the jurisdiction on any of the grounds set out in subsection (2); (b) the tax authority of the jurisdiction has determined the disputed amount is not assessable or collectible on any of those grounds. (2) For the purposes of paragraphs (1)(a) and (b), the grounds are the following: (a) the disputed amount is not payable on constitutional grounds or as a result of another superior law applying in the jurisdiction; (b) the disputed amount is not payable under a specific agreement with the government of the jurisdiction as to the tax liability of the Constituent Entity or the MNE Group; (c) the disputed amount is not payable because the Constituent Entity: (i) is not liable for any tax in the jurisdiction; or (ii) is entitled to compensation or reimbursement for any tax paid in the jurisdiction. (3) For the purposes of the definition of Domestic Top‑up Tax in section 5‑30, treat the disputed amount as not being an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the Fiscal Year. (4) However, if subsequently: (a) the Constituent Entity has paid all or part of the disputed amount (the paid amount); and (b) no Constituent Entity of the MNE Group objects to paying the disputed amount in judicial or administrative proceedings under a law of the jurisdiction; and (c) disregarding subsection (3), the paid amount would be all or part of an amount payable in relation to the Fiscal Year mentioned in subsection (1) by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the purposes of the definition of Domestic Top‑up Tax in section 5‑30; for those purposes, treat the paid amount as an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction for that Fiscal Year.