6‑10 Applicable MNE Groups—demergers6‑10 Applicable MNE Groups—demergers

6‑10 Applicable MNE Groups—demergers

(1) This section specifies conditions for the purposes of paragraph 12(1)(b) of the Act. (2) An MNE Group (the demerged Group) meets the conditions specified in this section for a Fiscal Year (the test year) if: (a) an Applicable MNE Group demerges (see subsection (3)) into 2 or more Groups; and (b) the demerged Group is one of those Groups; and (c) the demerged Group is an MNE Group throughout the test year; and (d) if the test year is the first Fiscal Year ending after the demerger—the demerged Group’s annual revenue for the test year equals or exceeds its GloBE Threshold for the test year; and (e) if the test year is the second, third or fourth Fiscal Year ending after the demerger—in at least: (i) the test year and a previous Fiscal Year ending after the demerger; or (ii) two of the Fiscal Years ending after the demerger and before the test year; the demerged Group has annual revenues equalling or exceeding its GloBE Threshold for the relevant year. (3) For the purposes of this section, a demerger means any arrangement under which the Group Entities of a Group are separated into 2 or more Groups that are no longer consolidated with the same Ultimate Parent Entity.