8‑210 Disqualification from election—swi8‑210 Disqualification from election—switch‑off rule

8‑210 Disqualification from election—switch‑off rule

(1) Despite subsection 8‑200(3), a Filing Constituent Entity for the MNE Group may not make an election for the MNE Group that applies to a Fiscal Year and a jurisdiction if subsection (2), (3), (4), (6), (7), (8) or (9) of this section applies. Flow‑through Entity UPEs not required to apply QDMTT (2) This subsection applies if: (a) the Ultimate Parent Entity of the MNE Group meets the following conditions: (i) it is located in the jurisdiction; (ii) it is a Flow‑through Entity; and (b) an Ultimate Parent Entity that meets those conditions is not required to apply the Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the Fiscal Year in any circumstance. Flow‑through Entity Constituent Entities not required to apply QDMTT (3) This subsection applies if: (a) a Constituent Entity of the MNE Group meets the following conditions: (i) it is located in the jurisdiction; (ii) it is not an Ultimate Parent Entity; (iii) it is a Flow‑through Entity; and (b) a Constituent Entity of an MNE Group that meets those conditions is not required to apply the Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the Fiscal Year in any circumstance. OECD Securitisation Entities not required to apply QDMTT (4) This subsection applies if: (a) a Constituent Entity of the MNE Group meets the following conditions: (i) it is located in the jurisdiction; (ii) it is an OECD Securitisation Entity; and (b) a Constituent Entity of an MNE Group that meets those conditions is not required to apply the Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the Fiscal Year in any circumstance (including where liability under the Qualified Domestic Minimum Top‑up Tax in respect of the Constituent Entity is imposed on other Constituent Entities of the MNE Group). (5) However, subsection (4) does not apply if, under the Qualified Domestic Minimum Top‑up Tax of the jurisdiction, the liability for the Fiscal Year in respect of a Constituent Entity of an MNE Group that meets those conditions is: (a) imposed on one or more other Constituent Entities of the MNE Group that are not OECD Securitisation Entities; or (b) if there are no other Constituent Entities of the MNE Group located in the jurisdiction—imposed on the Constituent Entity. JV entities not required to apply QDMTT (6) This subsection applies if: (a) the MNE Group is a separate MNE Group mentioned in subsection 6‑75(2) (Joint Ventures); and (b) the Joint Venture of the MNE Group, or a JV Subsidiary of the Joint Venture of the MNE Group, is located in the jurisdiction; and (c) a Joint Venture of an MNE Group, or a JV Subsidiary of a Joint Venture of an MNE Group, that is located in the jurisdiction is not required to apply the Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the Fiscal Year in any circumstance (including where liability under the Qualified Domestic Minimum Top‑up Tax in respect of the Joint Venture or the JV Subsidiary is imposed on Constituent Entities of the MNE Group). Investment Entities not required to apply QDMTT (7) This subsection applies if: (a) the MNE Group is an MNE Group mentioned in subsection 7‑100(1) (Investment Entities); and (b) a Constituent Entity of the MNE Group meets the following conditions: (i) it is located in the jurisdiction; (ii) it is an Investment Entity or an Insurance Investment Entity; and (c) a Constituent Entity of an MNE Group that meets those conditions is not required to apply the Qualified Domestic Minimum Top‑up Tax of the jurisdiction for the Fiscal Year in any circumstance. Initial phase of international activity year (8) This subsection applies if: (a) the Qualified Domestic Minimum Top‑up Tax of the jurisdiction provides that it does not apply to an MNE Group and a Fiscal Year in relation to which subsection 9‑40(1) applies; and (b) that provision is not limited in application to circumstances where the Constituent Entities of the MNE Group located in the jurisdiction are not subject to a Qualified IIR applied by another jurisdiction; and (c) that provision applies to the MNE Group and the Fiscal Year mentioned in subsection (1). Other specified restrictions (9) This subsection applies if: (a) the jurisdiction has a Qualified Domestic Minimum Top‑up Tax for a Fiscal Year; and (b) the jurisdiction is specified in a determination under subsection 8‑200(2); and (c) a determination under subsection (10) of this section specifies the jurisdiction and a restriction of the jurisdiction’s Qualified Domestic Minimum Top‑up Tax; and (d) the restriction applies to the MNE Group for the Fiscal Year. (10) The Minister may, by legislative instrument, make a determination specifying: (a) a jurisdiction; and (b) a restriction of the jurisdiction’s Qualified Domestic Minimum Top‑up Tax.