7‑115 Top‑up Tax of Constituent Entity t7‑115 Top‑up Tax of Constituent Entity that is not Investment Entity

7‑115 Top‑up Tax of Constituent Entity that is not Investment Entity

(1) Treat the Investment Entities mentioned in subsection 7‑80(1) as not being Constituent Entities of the MNE Group, for the purposes of: (a) computing the Top‑up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group; and (b) determining whether each Constituent Entity (other than an Investment Entity) of the MNE Group is a Low‑Taxed Constituent Entity. (2) Paragraph (1)(a) does not affect the operation of Chapters 2, 3, 4 (other than sections 4‑30 and 4‑35, and Parts 4‑5 and 4‑6), 6, 8 and 9 to the extent that they affect the application of Chapter 5 for the purposes of computing the Top‑up Tax of each Constituent Entity (other than an Investment Entity) of the MNE Group. (3) Subsection (4) applies if a Constituent Entity of the MNE Group that is not an Investment Entity has an amount payable for a Fiscal Year in respect of an Investment Entity under a Qualified Domestic Minimum Top‑up Tax of a jurisdiction. (4) In computing the Jurisdictional Top‑up Tax of the MNE Group for the jurisdiction under section 5‑30, treat the amount as not being an amount payable by the Constituent Entity under a Qualified Domestic Minimum Top‑up Tax of the jurisdiction (see definition of Domestic Top‑up Tax in that section).

Note: The amount is treated as an amount payable by the Investment Entity: see subsection 7‑105(4).