7‑15 Application of sections 7‑5 and 7‑17‑15 Application of sections 7‑5 and 7‑10 to Permanent Establishment

7‑15 Application of sections 7‑5 and 7‑10 to Permanent Establishment

(1) This section applies if: (a) the Ultimate Parent Entity of an MNE Group is a Flow‑through Entity; and (b) either: (i) the Ultimate Parent Entity; or (ii) if subsection (2) applies—the Tax Transparent Entity mentioned in that subsection; wholly or partly carries out its business through a Permanent Establishment. (2) For the purposes of subparagraph (1)(b)(ii), this subsection applies if the Ultimate Parent Entity holds an Ownership Interest in a Tax Transparent Entity that is: (a) a Direct Ownership Interest; or (b) an Indirect Ownership Interest held through a Tax Transparent Structure. (3) Subsection (4) applies if an amount (the attributable income) of the Permanent Establishment’s GloBE Income for a Fiscal Year is attributable to a Direct Ownership Interest held by another Entity in the Ultimate Parent Entity. (4) Subsections 7‑5(2), (3) and (4) apply to the Permanent Establishment in the same way that they apply to an Ultimate Parent Entity. (5) Subsection (6) applies if an amount (the attributable loss) of the Permanent Establishment’s GloBE Loss for a Fiscal Year is attributable to a Direct Ownership Interest held by another Entity in the Ultimate Parent Entity. (6) Subsection 7‑10(2) applies to the Permanent Establishment in the same way that it applies to an Ultimate Parent Entity.