Unincorporated GloBE Joint Ventures, etc. and certain unincorporated Group Entities
128-25 Unincorporated GloBE Joint Ventures, etc. and certain unincorporated Group Entities
Obligations
Subject to subsection (2), if an obligation is imposed under the *Minimum Tax law on a *GloBE Entity of a kind specified in an item in the table in subsection (5), the obligation is imposed on each liable entity specified in the item, but may be discharged by any such entity.
Liabilities to pay an amount
If an amount is payable under the *Minimum Tax law by a *GloBE Entity of a kind specified in an item in the table in subsection (5), the liable entities specified in the item are jointly and severally liable to pay the amount.
Offences
Any offence against the *Minimum Tax law that is committed by a *GloBE Entity of a kind specified in an item in the table in subsection (5) is taken to have been committed by each liable entity specified in the item.
In a prosecution of an entity for an offence that the entity is taken to have committed because of subsection (3), it is a defence if the entity proves that the entity:
did not aid, abet, counsel or procure the relevant act or omission; and
was not in any way knowingly concerned in, or party to, the relevant act or omission (whether directly or indirectly and whether by any act or omission of the entity).
The defence in subsection (4) does not apply in relation to offences under Part 2.4 of the Criminal Code.
A defendant bears a legal burden in relation to the matters in subsection (4): see section 13.4 of the Criminal Code.
Liable entities
For the purposes of subsections (1) to (3), the following kinds of *GloBE Entity and liable entities are specified:
Liable Entities | ||
|---|---|---|
Item | Kind of *GloBE Entity | Liable entity |
1 | unincorporated *GloBE Joint Venture of an *Applicable MNE Group that is a *GloBE partnership | each partner of the unincorporated GloBE Joint Venture that is a *Group Entity of the Applicable MNE Group |
2 | unincorporated *GloBE Joint Venture of an *Applicable MNE Group, that is not a trust or a *GloBE partnership | each *Group Entity of the Applicable MNE Group that holds a Direct Ownership Interest (within the meaning of the *Minimum Tax Act) in the GloBE Joint Venture |
3 | unincorporated *GloBE JV Subsidiary of a *GloBE Joint Venture of an *Applicable MNE Group, where the GloBE JV Subsidiary is a *GloBE partnership | each partner of the unincorporated GloBE JV Subsidiary that is: (a) the GloBE Joint Venture; or (b) another GloBE JV Subsidiary of the GloBE Joint Venture; or (c) a *Group Entity of the Applicable MNE Group |
4 | unincorporated *GloBE JV Subsidiary of a *GloBE Joint Venture of an *Applicable MNE Group, where the GloBE JV Subsidiary is not a trust or a *GloBE partnership | each of the following: (a) the GloBE Joint Venture; (b) a *Group Entity of the Applicable MNE Group that holds a Direct Ownership Interest (within the meaning of the *Minimum Tax Act) in the GloBE Joint Venture |
5 | unincorporated *Group Entity of an *Applicable MNE Group that is not a trust or a *GloBE partnership | each Group Entity of the Applicable MNE Group: (a) to which a portion of the unincorporated Group Entity’s assets, income, expenses, cash flows and liabilities belong; or (b) that is a member of the committee of management of the unincorporated Group Entity |
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