8‑110 Transitional CbCR Safe Harbour—Hyb8‑110 Transitional CbCR Safe Harbour—Hybrid Arbitrage Arrangements

8‑110 Transitional CbCR Safe Harbour—Hybrid Arbitrage Arrangements

(1) For the purposes of applying subsection 8‑10(1) in relation to an MNE Group and a jurisdiction: (a) exclude from the MNE Group’s profit or loss before income tax for the jurisdiction any expense or loss arising as a result of a deduction/non‑inclusion arrangement, or duplicate loss arrangement, entered into after 15 December 2022; and (b) exclude from the MNE Group’s income tax expense for the jurisdiction any income tax expense arising as a result of a duplicate tax recognition arrangement entered into after 15 December 2022. (2) Subsections (3) and (4) apply if: (a) the expense or loss mentioned in paragraph (1)(a) arises as a result of an arrangement that is a duplicate loss arrangement; and (b) the arrangement is a duplicate loss arrangement because of paragraph 8‑125(1)(a); and (c) all Constituent Entities of the MNE Group including the expense or loss in their financial statements are located in the same jurisdiction. (3) A Filing Constituent Entity for the MNE Group must choose one of the Constituent Entities for the purposes of subsection (4). (4) Treat subsection (1) as not applying with respect to the expense or loss in the financial statements of that Constituent Entity.