Clause 56

in subsection (1), in the definition of “excluded equity gain or loss”, in paragraph (a), after “another entity”, insert “, or the impairment of such interest,”;

in subsection (1), in the definition of “multi‑parent group”, replace paragraph (b) with —“(b)at least one entity or permanent establishment of all the entities and permanent establishments of those groups is located in a different jurisdiction from that of the other entities and permanent establishments of those groups;”;

in subsection (1), in the definition of “portfolio shareholding”, delete “constituent”; and

after subsection (6), insert —“Prescription of qualified domestic minimum top‑up tax, qualified IIR and qualified UTPR(6A) Subsections (6B), (6C) and (6D) apply to the regulations prescribing a tax as a “qualified domestic minimum top‑up tax”, “qualified IIR” or “qualified UTPR”.(6B) The regulations may provide that a tax is a qualified domestic minimum top‑up tax, qualified IIR or qualified UTPR with effect from a particular date, and the tax is deemed to be such only with effect from that date.(6C) The regulations may provide that a tax ceases to be a qualified domestic minimum top‑up tax, qualified IIR or qualified UTPR with effect from a particular date, and the tax ceases to be such with effect from that date.(6D) Regulations to provide that a tax is a qualified domestic minimum top‑up tax, qualified IIR or qualified UTPR, and for the matters in subsections (6B) and (6C), may do so by reference to a webpage that is accessible from a prescribed Internet website of the Organisation for Economic Co‑operation and Development (OECD), as amended from time to time.“Reference entity”(6E) In this Act, a constituent entity (A) of a group is a “reference entity” in relation to another constituent entity (B) of the group that is a flow‑through entity if A —

is not a flow‑through entity; and

either —

holds a direct ownership interest in B; or

holds an indirect ownership interest in B through one or more flow‑through entities only.(6F) If no constituent entity of a group is a reference entity in relation to B under subsection (6E), then any flow‑through entity that is the ultimate parent entity of the group is a “reference entity” in relation to B.“Securitisation entity”(6G) In this Act, “securitisation entity” means any entity —

that is a participant in a securitisation arrangement (arrangement A); (b)that only carries out activities that facilitate one or more securitisation arrangements; (c)that grants security over its assets in favour of its creditors or the creditors of another securitisation entity; and

that pays out all cash received from its assets to its creditors, or the creditors of another securitisation entity, on an annual or more frequent basis, other than —

cash retained to meet an amount of profit for a financial year required by the documentation of arrangement A, for eventual distribution to equity holders (or equivalent), being an amount of profit that is negligible relative to the revenues of the entity for that financial year; or

cash reasonably required under the terms of arrangement A for either or both of the following purposes: (A)to make provision for future payments which are required, or will likely be required, to be made by the entity under the terms of arrangement A;

to maintain or enhance the creditworthiness of the entity.(6H) In subsection (6G), “securitisation arrangement” means an arrangement that satisfies both of the following conditions:

it is implemented for the purpose of pooling and repackaging a portfolio of assets (or exposures to assets) held by a member of an MNE group for investors that are not members of the MNE group, in a manner that legally segregates one or more identified pools of assets;

it seeks through contractual agreements to limit the exposure of those investors to the risk of insolvency of an entity holding the legally segregated assets by controlling the ability of identified creditors of that entity (or of another entity in the arrangement) to make claims against it, through legally binding documentation entered into by those creditors.”.