Legislative Proposals Relating to the Global Minimum Tax Act and to the Income Tax Conventions Interpretation Act
Legislative Proposals Relating to the Global Minimum Tax Act and to the Income Tax Conventions Interpretation Act
Marginal note:
1 (1) The definition reverse hybrid entity in subsection 2(1) of the Global Minimum Tax Act is repealed.
(2) Subsection 2(1) of the Act is amended by adding the following in alphabetical order:
securitization entity means an entity that
(a) is a participant in one or more arrangements, each of which
(i) is implemented for the purpose of pooling and repackaging a portfolio of assets (or exposures to assets) for investors that are not constituent entities of the same MNE group as the entity in a manner that legally segregates one or more identified pools of assets, and
(ii) seeks through contractual agreements to limit the exposure of those investors to the risk of insolvency of an entity that holds the legally segregated assets by controlling the ability of identified creditors of that entity (or of another entity that is a participant in the arrangement) to make claims against an entity that is a participant in the arrangement through legally binding documentation entered into by those creditors; and
(b) meets the following conditions:
(i) the entity only carries out activities that facilitate one or more arrangements described in paragraph (a),
(ii) the entity grants security over its assets in favour of its creditors (or the creditors of another securitization entity),
(iii) the entity pays out all cash received from its assets to its creditors (or the creditors of another securitization entity) on an annual or more frequent basis, other than
(iv) the amount of profit referred to in clause (iii)(A) for a fiscal year is negligible relative to the revenues of the entity for the fiscal year. (entité de titrisation)
(3) Subsections (1) and (2) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
2 (1) Subsection 3(1) of the Act is replaced by the following:
Marginal note:Interpretation
(1) This Part, Part 2, Part 2.1 and relevant provisions of Part 5 implement the GloBE Model Rules, the GloBE Commentary and the administrative guidance in respect of the GloBE Model Rules approved by the Inclusive Framework and published by the OECD from time to time and, unless the context otherwise requires, these Parts and provisions are to be interpreted consistently with those sources, as amended from time to time.
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2024.
3 (1) Paragraph (b) of the description of B in subsection 15(1) of the Act is replaced by the following:
(b) the allocable share, of the top-up amount of the constituent entity for the fiscal year, of a relevant parent entity of the MNE group — that is located in a jurisdiction where the constituent entity is subject to a qualified IIR — through which the person referred to in paragraph (a), or the relevant parent entity referred to in paragraph (b), of the description of A indirectly holds an ownership interest in the constituent entity.
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
4 (1) Paragraphs 17(6)(a) to (d) of the Act are replaced by the following:
(a) amounts in respect of the particular flow-through entity’s net income or loss that are attributable to ownership interests of persons or entities that are not group entities and that hold their ownership interests in the particular flow-through entity directly, or through one or more flow-through entities that are group entities in respect of the particular flow-through entity, are not to be included in computing the financial accounting income of any group entity, unless
(i) the particular flow-through entity is an ultimate parent entity, or
(ii) the particular flow-through entity is owned, directly or through one or more flow-through entities that are group entities in respect of the particular flow-through entity, by an ultimate parent entity that is also a flow-through entity, in which case this paragraph does not apply to amounts in respect of the particular flow-through entity’s net income or loss to the extent those amounts are attributable to persons or entities that hold their ownership interests in the particular flow-through entity through that ultimate parent entity;
(b) if a particular group entity has an ownership interest in the particular flow-through entity, an amount that, in the absence of this paragraph — and, for greater certainty, after excluding amounts to which paragraph (a) applies and amounts allocated to a permanent establishment in accordance with paragraph (1)(b) — would be included in the financial accounting income of the particular flow-through entity is excluded from its financial accounting income and included in the financial accounting income of the particular group entity in accordance with the particular group entity’s ownership interest (determined having regard only to ownership interests held by group entities) in the particular flow-through entity, to the extent that
(i) the particular flow-through entity is not an ultimate parent entity,
(ii) the particular flow-through entity is fiscally transparent in relation to the particular group entity,
(iii) the particular group entity is not a flow-through entity, other than an ultimate parent entity, and
(iv) the particular group entity holds its ownership interest in the particular flow-through entity
(c) any amount of the net income or loss of the particular flow-through entity that is not excluded in computing its financial accounting income because of paragraph (a) or (b), or subsection (3), is included in the financial accounting income of the particular flow-through entity.
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
5 (1) Subsection 22(2) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d):
(e) if the constituent entity is subject to covered taxes in the fiscal year that are applicable in respect of passive income of another constituent entity of the MNE group in which the constituent entity has an ownership interest, the portion of those covered taxes that is not allocated to the other constituent entity under paragraph 24(4)(a) because of paragraph 24(4)(c), or under paragraph 24(5)(a) because of paragraph 24(5)(b).
(2) Subparagraph 22(3)(a)(ii) of the Act is replaced by the following:
(ii) any portion of an addition to covered taxes, in respect of the constituent entity for the fiscal year under subsection (2) (other than under paragraph (2)(e)), that relates to the amount of income;
(3) Subsections (1) and (2) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
6 (1) Subparagraph 24(3)(b)(ii) of the Act is replaced by the following:
(ii) in respect of any portion of the net income or loss of the tax transparent entity that is included in computing the financial accounting income of the constituent entity-owner because of paragraph 17(6)(b).
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
7 (1) Paragraph (b) of the definition qualified flow-through ownership interest in subsection 28(1) of the Act is replaced by the following:
(b) at the time the ownership interest was acquired by the owner, the total return to be received by the owner (including distributions — other than distributions by the particular tax transparent entity out of its proceeds from the transfer of tax credits other than qualified refundable tax credits and marketable transferable tax credits — the tax benefits of tax losses and the tax benefits of qualified refundable tax credits and marketable transferable tax credits of the owner received in respect of the ownership interest, but excluding the tax benefits of tax credits other than qualified refundable tax credits and marketable transferable tax credits of the owner) from its investment in the ownership interest could not reasonably have been expected to be greater than or equal to the investment amount of the owner in respect of the ownership interest. (titre de participation intermédiaire admissible)
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
8 (1) The portion of subparagraph 32(5)(b)(ii) of the Act before clause (A) is replaced by the following:
(ii) if all or any portion of the net income or loss of the constituent entity is allocated to one or more of its constituent entity-owners (each referred to in this subparagraph as a “relevant owner”) under paragraph 17(6)(b) for the fiscal year,
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
9 (1) The Act is amended by adding the following after section 47:
Marginal note:Election — transitional UTPR safe harbour
47.1 (1) If the filing constituent entity of an MNE group elects the transitional UTPR safe harbour for the jurisdiction where the ultimate parent entity of the MNE group is located (referred to in this subsection as the “UPE jurisdiction”) for a fiscal year, the top-up amount of each constituent entity of, and each joint venture entity in respect of, the MNE group that is located in the UPE jurisdiction for the year is deemed to be nil for the purpose of computing the total UTPR top-up amount (as defined in section 49.5) of the MNE group for the fiscal year, if
Marginal note:Corporate income tax rate test
(2) For the purposes of paragraph (1)(a),
(a) the corporate income tax rate of a jurisdiction is the nominal statutory tax rate generally imposed by the jurisdiction on qualifying MNE groups on a comprehensive measure of income; and
(b) where one or more subnational jurisdictions within the jurisdiction also imposes a corporate income tax, subnational tax rates may be taken into account in determining the rate under paragraph (a) if those taxes are structured so that in the case of each subnational jurisdiction within the jurisdiction, the combined nominal statutory tax rate generally applicable to qualifying MNE groups on a comprehensive measure of income is equal to or greater than 20%.
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2024.
10 (1) The portion of subsection 48(1) of the Act before paragraph (a) is replaced by the following:
(1) Subject to subsections (2), (3), (5) and (5.1), in determining the total deferred tax adjustment amount of a constituent entity of an MNE group that is located in a jurisdiction for the GloBE transition year of the MNE group in respect of the jurisdiction and each subsequent fiscal year in which the constituent entity is included in the MNE group,
(2) Subparagraph 48(5)(b)(ii) of the Act is replaced by the following:
(ii) the transferee is deemed to have a deferred tax asset reflected in its financial accounts in an amount equal to the total of the following amounts, adjusted for any capitalized expenditure, amortization and depreciation in respect of the asset that are referred to in subparagraphs (a)(i) and (ii):
(A) the portion of the current tax expense for a fiscal year of the transferor (or, where a group taxation regime applies, the portion of the current tax expense for the fiscal year of the entity that pays taxes in respect of the transferor under that regime) in respect of covered taxes that is demonstrated to have resulted from the transfer,
(B) the portion of the current tax expense for a fiscal year of any other entity in respect of covered taxes that is demonstrated to have resulted from the transfer and that would have been allocated to the transferor under section 24 if
(C) the amount of any deferred tax asset of the transferor (or, where a group taxation regime applies, the entity that pays taxes in respect of the transferor under that regime) that is demonstrated to have been reversed or not created solely because any gain arising on the transfer was included in the domestic taxable income of the transferor.
(3) The Act is amended by adding the following after subsection 48(5):
Marginal note:No adjusted covered taxes reduction
(5.1) The creation of a deferred tax asset under subparagraph 48(5)(b)(ii) shall not reduce the adjusted covered taxes of any constituent entity for any fiscal year.
(4) Subsections (1) to (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
11 (1) The Act is amended by adding the following after section 49:
PART 2.1UTPR
Marginal note:Definitions
49.1 The definitions in this section apply for the purposes of this Part.
- initial phase of international activity year
initial phase of international activity year, of an MNE group, means a fiscal year
(a) throughout which there are constituent entities (other than investment entities and flow-through entities that are stateless constituent entities) of the MNE group that are located in no more than six different jurisdictions; and
(b) for which the total of all amounts, each of which is the net book value, for the fiscal year, of a tangible asset (other than any tangible asset, of a flow-through entity, that is physically located in the reference jurisdiction) of a constituent entity (other than an investment entity and including, for greater certainty, a flow-through entity) of the MNE group that is located in a jurisdiction other than the reference jurisdiction, does not exceed €50 million. (année de la phase de démarrage des activités internationales)
- net book value
net book value, for a fiscal year, of a tangible asset, means the average of the beginning and end values of the tangible asset for the fiscal year after taking into account accumulated depreciation, depletion and impairment, as recorded in the financial statements. (valeur nette comptable)
- number of employees
number of employees, of a constituent entity of an MNE group for a fiscal year, means the total number of employees of the constituent entity, on a full-time equivalent basis for the fiscal year, determined in accordance with the following rules:
(a) an independent contractor participating in the ordinary operating activities of the constituent entity is an employee;
(b) an employee is an employee of a permanent establishment or main entity to the extent that the payroll costs of the employee are included in the separate financial accounts of the permanent establishment (as adjusted in accordance with clause 17(1)(b)(ii)(B) or subsection 17(2)) or main entity, as the case may be;
(c) to the extent that an employee is, under paragraph (b), an employee of a permanent establishment, the employee is not to be taken into account in determining the number of employees of the main entity of the permanent establishment; and
(d) if a constituent entity was not a member of the MNE group throughout the fiscal year, the determination of the number of full-time equivalent employees of the constituent entity for the fiscal year is to be done on a just and reasonable basis. (nombre d'employés)
- reference jurisdiction
reference jurisdiction, of an MNE group, means the jurisdiction
(a) in which a constituent entity of the MNE group is located in the first fiscal year that any constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR or Part 3; and
(b) for which the total of the net book values, for that fiscal year, of tangible assets held by the one or more constituent entities that are located in the jurisdiction is greater than the total of the net book values, for that fiscal year, of tangible assets held by constituent entities of the MNE group that are located in any other single jurisdiction. (juridiction de référence)
- tangible assets
tangible assets, of a constituent entity for a fiscal year, means the tangible assets of the constituent entity for the fiscal year determined in accordance with the following rules:
(a) for greater certainty, tangible assets do not include cash or cash equivalents, intangibles or financial assets;
(b) the tangible assets of a constituent entity that is a permanent establishment are only those that are reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17(1)(b)(ii)(B) or subsection 17(2) (referred to in this definition as “permanent establishment assets”); and
(c) the tangible assets of a constituent entity that is a main entity in respect of one or more permanent establishments do not include any permanent establishment assets of those permanent establishments. (actifs corporels)
Marginal note:UTPR
49.2 (1) A person must pay a tax in respect of a constituent entity of an MNE group for a fiscal year in an amount equal to the UTPR top-up amount of the constituent entity for the fiscal year, if
Marginal note:Relevant assumptions
(2) For the purposes of clause (1)(c)(ii)(B), the relevant assumptions are that
(a) the constituent entity referred to in that clause has income for the fiscal year that would be included in computing its income for the purposes of Part I of the Income Tax Act if it were a person resident in Canada; and
(b) the person referred to in that clause is resident in Canada for the purposes of the Income Tax Act.
Marginal note:Definition of UTPR top-up amount
49.3 The UTPR top-up amount, for a fiscal year, of a constituent entity (other than a securitization entity) of an MNE group located in Canada means the amount determined by the formula
A × (B + C)
where
- A
- is the Canadian UTPR top-up amount of the MNE group for the fiscal year;
- B
- is the amount determined by the formula
50% × D ÷ E
where
- D
- is the number of employees of the constituent entity for the fiscal year, and
- E
- is the total of all amounts, each of which is the number of employees of a constituent entity (other than a securitization entity) of the MNE group located Canada for the fiscal year; and
- C
- is the amount determined by the formula
50% × F ÷ G
where
- F
- is the net book value of tangible assets of the constituent entity for the fiscal year, and
- G
- is the total of all amounts, each of which is the net book value of tangible assets of a constituent entity (other than a securitization entity) of the MNE group located in Canada for the fiscal year.
Marginal note:Definition of Canadian UTPR top-up amount
49.4 The Canadian UTPR top-up amount, of an MNE group for a fiscal year, means the amount determined by the formula
A × B
where
- A
- is the total UTPR top-up amount of the MNE group for the fiscal year, and
- B
- is the Canadian UTPR percentage of the MNE group for the fiscal year.
Marginal note:Definition of total UTPR top-up amount
49.5 The total UTPR top-up amount of an MNE group for a fiscal year is the total of all amounts, each of which is, in respect of a constituent entity of the MNE group for the fiscal year,
(a) nil, if
(i) where the constituent entity is the ultimate parent entity, it is subject to a qualified IIR in the jurisdiction where it is located, or
(ii) in any other case, all of the ultimate parent entity’s ownership interests in the constituent entity are held, directly or indirectly, by one or more relevant parent entities (which, for greater certainty, may include the ultimate parent entity) of the MNE group that are located in jurisdictions where the constituent entity is subject to a qualified IIR; and
(b) in any other case, the amount determined by the formula
A − B
where
- A
- is
(i) if the constituent entity is a joint venture entity in respect of the MNE group, the amount that would be the ultimate parent entity’s allocable share of the top-up amount of the joint venture entity for the fiscal year, if the ultimate parent entity were a relevant parent entity of the MNE group for the fiscal year, and
(ii) in any other case, the top-up amount of the constituent entity for the fiscal year, and
- B
- is the total of all amounts, each of which is an amount determined by the formula
C − D
where
- C
- is the allocable share, of the top-up amount of the constituent entity for the fiscal year, of a relevant parent entity that is located in a jurisdiction where the constituent entity is subject to a qualified IIR, and
- D
- is the total of all amounts, each of which is a portion of the top-up amount of the constituent entity for the fiscal year that is included in both the amount determined for C in respect of the relevant parent entity for the fiscal year and the allocable share, of the top-up amount of the constituent entity for the fiscal year, of another relevant parent entity — that is located in a jurisdiction where the constituent entity is subject to a qualified IIR — through which the relevant parent entity indirectly holds an ownership interest in the constituent entity.
Marginal note:Definition of Canadian UTPR percentage
49.6 (1) The Canadian UTPR percentage of an MNE group for a fiscal year is the percentage determined by the formula
A + B
where
- A
- is the amount determined by the formula
50% × C ÷ D
where
- C
- is the total of all amounts, each of which is the number of employees of a constituent entity, of the MNE group, located in Canada for the fiscal year, and
- D
- is the total of all amounts, each of which is the number of employees of a constituent entity, of the MNE group, that is located in a jurisdiction in which a qualified UTPR is in force for the fiscal year; and
- B
- is the amount determined by the formula
50% × E ÷ F
where
- E
- is the total of all amounts, each of which is the net book value of tangible assets of a constituent entity, of the MNE group, located in Canada for the fiscal year, and
- F
- is the total of all amounts, each of which is the net book value of tangible assets of a constituent entity, of the MNE group, located in a jurisdiction in which a qualified UTPR is in force for the fiscal year.
Marginal note:Qualified UTPR — special rule
(2) For the purposes of determining the Canadian UTPR percentage of an MNE group for a fiscal year, a jurisdiction is deemed not to have a qualified UTPR in force for the fiscal year if
(a) under a provision, of the qualified UTPR of that jurisdiction for a preceding fiscal year, that is substantially similar to section 49.4, an amount in respect of the total UTPR top-up amount of the MNE group for the preceding fiscal year was allocated to the jurisdiction in respect of the MNE group;
(b) the top-up allocation has not yet resulted in an additional cash tax expense, for the constituent entities of the MNE group located in that jurisdiction, equal to the allocated amount; and
(c) this subsection would not, in the absence of this paragraph, apply in respect of every jurisdiction, in which one or more constituent entities of the MNE group are located, that would otherwise have a qualified UTPR in force for the fiscal year.
Marginal note:Employees and tangible assets — special rule
49.7 In determining the number of employees and the tangible assets of a constituent entity of an MNE group for a fiscal year for the purposes of this Part, other than for the purposes of paragraph (b) of the definition initial phase of international activity year in section 49.1,
(a) an investment entity is deemed to have no employees and no tangible assets; and
(b) employees or tangible assets that would, in the absence of this paragraph, be employees or tangible assets, as the case may be, of a flow-through entity that is a stateless entity (and that are not employees or tangible assets, as the case may be, of a permanent establishment of the flow-through entity)
(i) are deemed to be employees or tangible assets, as the case may be, of any constituent entities of the MNE group that are located in the jurisdiction in which the flow-through entity was created, or
(ii) if there are no constituent entities described in subparagraph (i), are deemed not to be employees or tangible assets, as the case may be.
Marginal note:Application — joint ventures
49.8 (1) For the purposes of this Part, other than the definitions initial phase of international activity year in section 49.1 and UTPR top-up amount in section 49.3, any reference to a constituent entity of an MNE group includes a joint venture entity in respect of the MNE group.
Marginal note:Joint ventures — exception
(2) Despite subsection (1), a reference to a constituent entity of an MNE group in the definition UTPR top-up amount in section 49.3 for a fiscal year includes a joint venture entity in respect of the MNE group if, for the fiscal year,
Marginal note:Initial phase of international activity — exclusion
49.9 (1) Despite section 49.5, and subject to subsection (2), the total UTPR top-up amount of an MNE group for a fiscal year is deemed to be nil if
Marginal note:Reference jurisdiction — special rule
(2) If Canada is the reference jurisdiction of an MNE group, for a fiscal year for which the total UTPR top-up amount of the MNE group would, in the absence of this subsection, be deemed to be nil under subsection (1),
(a) subsection (1) does not apply for the purpose of determining the MNE group’s total UTPR top-up amount for the fiscal year;
(b) for the purpose of determining the total UTPR top-up amount of the MNE group for the fiscal year under section 49.5, the top-up amount of a constituent entity of the MNE group that is located in Canada for the fiscal year is deemed to be nil; and
(c) despite section 49.6, the Canadian UTPR percentage of the MNE group for the fiscal year is deemed to be 100%.
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2024.
12 (1) The portion of subsection 51(1) of the Act before paragraph (a) is replaced by the following:
51 (1) A particular person must pay a tax in respect of a constituent entity (other than a securitization entity) of an MNE group for a fiscal year in an amount equal to the domestic top-up amount of the constituent entity for the fiscal year, if
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
13 (1) The portion of subsection 52(1) of the Act before paragraph (a) is replaced by the following:
52 (1) Subject to subsection 53(3), the domestic top-up amount, of a constituent entity (other than a securitization entity) of an MNE group that is located in Canada for a fiscal year, means the amount that would be the top-up amount of the constituent entity for the fiscal year determined under subsection 30(1), 34(2), 35(1) or 36(2) (as adjusted under any other applicable provision of Part 2), as the case may be, if that amount (and any amounts or results relevant to the determination of that amount) were required to be determined and
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
14 (1) The definitions in subsection 53(1) of the Act are replaced by the following:
- initial phase of international activity year
initial phase of international activity year has the same meaning as in section 49.1. (année de la phase de démarrage des activités internationales)
- net book value
net book value has the same meaning as in section 49.1. (valeur nette comptable)
- reference jurisdiction
reference jurisdiction has the same meaning as in section 49.1. (juridiction de référence)
- tangible assets
tangible assets has the same meaning as in section 49.1. (actifs corporels)
(2) Subsection 53(2) of the Act is repealed.
(3) Subsections (1) and (2) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2024.
15 (1) Subsection 61(1) of the Act is replaced by the following:
Marginal note:Part 2 or 2.1 return
61 (1) A person that is liable to pay tax under Part 2 or 2.1 for a fiscal year must file in the prescribed form and manner with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable.
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2024.
16 (1) Subsection 66(1) of the Act is replaced by the following:
(1) The Minister may assess a particular constituent entity (other than a securitization entity) of an MNE group that is located in Canada in respect of tax and other amounts payable under this Part or Part 2 by another constituent entity of the MNE group that is located in Canada. If such an assessment is made, the particular constituent entity is jointly and severally, or solidarily, liable with the other constituent entity to pay the amount assessed and this Part applies to the particular constituent entity in respect of the amount assessed, with any modifications that the circumstances require.
(2) Section 66 of the Act is amended by adding the following after subsection (2):
Marginal note:Part 2.1 — joint and several, or solidary, liability
(2.1) A particular constituent entity (other than a securitization entity) that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 2.1 by another constituent entity of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts, with any modifications that the circumstances require.
Marginal note:Part 2.1 — appointment of paying entity
(2.2) If multiple persons, in respect of an MNE group, are required to pay amounts under Part 2.1 for a fiscal year, one of those persons that is resident in Canada may be appointed, in the Part 2.1 return filed under subsection 61(1), to pay those amounts on behalf of all persons that would, in the absence of this subsection, be required to pay the amounts for the fiscal year.
(3) Subsection 66(3) of the Act is replaced by the following:
(3) A particular constituent entity (other than a securitization entity) that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 3 by another constituent entity of the same MNE group or a joint venture entity in respect of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity or joint venture entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts, with any modifications that the circumstances require.
(4) Subsection 66(4) of the Act is replaced by the following:
Marginal note:Part 2.1 and 3 — joint and several, or solidary, liability of joint venture entities
(4) A particular joint venture entity that is located in Canada is, in respect of tax and other amounts payable under this Part, Part 2.1 or Part 3 by another joint venture entity of the same joint venture group, jointly and severally, or solidarily, liable with the other joint venture entity to pay those amounts and this Part applies to the particular joint venture entity in respect of those amounts, with any modifications that the circumstances require.
(5) Subsections (1) and (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
(6) Subsections (2) and (4) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2024.
17 (1) Paragraph 85(2)(b) of the Act is replaced by the following:
(b) with the written consent of the person, to dispose of an appeal of the person or another person; or
(2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023.
18 (1) The Income Tax Conventions Interpretation Act is amended by adding the following after section 4.3:
Marginal note:Application of the Global Minimum Tax Act
4.4 Notwithstanding the provisions of a convention or the Act giving the convention the force of law in Canada, in applying the provisions of the convention, nothing prevents the application of the Global Minimum Tax Act, as amended from time to time, or obliges Canada to provide relief in any form for tax imposed under similar legislation in the other state.
(2) Subsection (1) is deemed to have come into force on January 1, 2024.
- Date modified: