Global Minimum Tax Act (S.C. 2024, c. 17, s. 81)
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Act current to 2024-06-20
PART 3Domestic Minimum Top-up Tax (continued)
Marginal note:Definitions — initial phase of international activity
53 (1) The following definitions apply in this section.
- 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 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 held by a constituent 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)
- 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 this Part; and
(b) for which the sum 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 sum 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)
Marginal note:Tangible assets — permanent establishments
(2) For the purposes of the definitions initial phase of international activity year and reference jurisdiction in subsection (1),
(a) the tangible assets held by 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 subsection as “permanent establishment assets”); and
(b) the tangible assets held by a constituent entity that is a main entity in respect of one or more permanent establishments are not to include any permanent establishment assets of those permanent establishments.
Marginal note:Initial phase of international activity — exclusion
(3) The domestic top-up amount of a constituent entity of an MNE group that is located in Canada for a fiscal year is deemed to be nil if
(a) there is no relevant parent entity that is located in a jurisdiction (other than Canada) where it is subject to tax under a qualified IIR and that holds an ownership interest in any constituent entity of the MNE group that is located in Canada;
(b) the fiscal year
(i) begins on or before the day that is five years after the first day of the first fiscal year that a constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR, and
(ii) is an initial phase of international activity year; and
(c) all fiscal years preceding the fiscal year are initial phase of international activity years.
PART 4Anti-Avoidance
Marginal note:General anti-avoidance rule
54 (1) Section 245 of the Income Tax Act applies for the purposes of this Act with any modifications that the circumstances require.
(2) For purposes of subsection (1), the following rules also apply:
(a) a constituent entity of an MNE group located in Canada may file in prescribed manner with the Minister, on behalf of the MNE group, an information return in prescribed form and containing prescribed information in respect of a transaction (which, for the purposes of this section, includes an arrangement or event) or series of transactions (within the meaning of subsection 248(10) of the Income Tax Act) as if subsection 237.3(12.1) of the Income Tax Act applied for the purposes of this Act; and
(b) if a constituent entity files an information return in accordance with paragraph (a), any penalty otherwise applicable because of subsection 245(5.1) of the Income Tax Act does not apply in respect of the transaction or series.
- 2024, c. 17, s. 81 “54”
- 2024, c. 17, s. 111
PART 5General Provisions, Administration and Enforcement
Definitions
Marginal note:Definitions
55 (1) The following definitions apply in this Part.
- Agency
Agency means the Canada Revenue Agency continued by subsection 4(1) of the Canada Revenue Agency Act. (Agence)
- assessment
assessment means an assessment or a reassessment under this Act. (cotisation)
- bank
bank means a bank or an authorized foreign bank, as those terms are defined in section 2 of the Bank Act, that is not subject to the restrictions and requirements referred to in subsection 524(2) of that Act. (banque)
- bankrupt
bankrupt has the same meaning as in section 2 of the Bankruptcy and Insolvency Act. (failli)
- business number
business number means any number (other than a Social Insurance Number) used by the Minister to identify a person for the purposes of this Act. (numéro d’entreprise)
- Canadian filing entity
Canadian filing entity means an entity appointed under subsection 61(3). (entité déclarante Canadienne)
- Commissioner
Commissioner means, except in sections 58, 120 and 137, the Commissioner of Revenue appointed under section 25 of the Canada Revenue Agency Act. (commissaire)
- designated filing entity
designated filing entity, in respect of an MNE group for a fiscal year, means a constituent entity of the MNE group that has been appointed by the MNE group in substitution for the ultimate parent entity to file a GIR on behalf of the MNE group for the fiscal year, if the entity
(a) has been given everything it may reasonably require to comply with the filing obligations under this Part; and
(b) is located in a jurisdiction in the fiscal year that has a qualified IIR or a qualified UTPR in effect for the fiscal year. (entité déclarante désignée)
- designated local entity
designated local entity means an entity appointed under paragraph 60(3)(a). (entité locale désignée)
- designated notification entity
designated notification entity means an entity appointed under paragraph 60(5)(a). (entité de notification déterminée)
- GIR due date
GIR due date, in respect of a qualifying MNE group for a fiscal year, means the later of
(a) June 30, 2026; and
(b) the day that is
(i) 18 months after the last day of the fiscal year, if the fiscal year is the earlier of
(A) the first fiscal year for which a constituent entity of, or joint venture entity in respect of, the MNE group that is located in Canada is subject to Part 3, and
(B) the first fiscal year that a constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified IIR or qualified UTPR; and
(ii) 15 months after the last day of the fiscal year, in any other case. (date d’échéance DRG)
- GIR exchange date
GIR exchange date, in respect of a qualifying MNE group for a fiscal year, means the date that exchanges of GIR information are due to occur under the applicable (or relevant) qualifying competent authority agreement. (date d’échange DRG)
- judge
judge, in respect of any matter, means a judge of a superior court having jurisdiction in the province in which the matter arises or a judge of the Federal Court. (juge)
- official
official means a person who is employed in the service of, who occupies a position of responsibility in the service of, or who is engaged by or on behalf of, His Majesty in right of Canada or a province, or a person who was formerly so employed, who formerly occupied such a position or who formerly was so engaged. (fonctionnaire)
- person
person includes an entity. (personne)
- qualifying competent authority agreement
qualifying competent authority agreement means an agreement that
(a) is between authorized representatives of the jurisdictions that are parties to a listed international agreement (as defined in subsection 248(1) of the Income Tax Act); and
(b) requires the automatic exchange of GIR information between the jurisdictions of the parties. (accord admissible entre autorités compétentes)
- qualifying foreign filing entity
qualifying foreign filing entity, in respect of a qualifying MNE group for a fiscal year, means a constituent entity of the MNE group, if
(a) the constituent entity is the ultimate parent entity or designated filing entity of the MNE group for the fiscal year;
(b) the constituent entity is located in a jurisdiction (referred to in this definition as the “filing jurisdiction”) other than Canada in the fiscal year;
(c) the constituent entity is obligated to file a GIR, in respect of the MNE group for the fiscal year, with the tax authority of the filing jurisdiction; and
(d) the filing jurisdiction has a qualifying competent authority agreement that is in effect, and to which Canada is a party, on or before the GIR exchange date for the fiscal year. (entité déclarante étrangère admissible)
- record
record means any material on which representations, in any form, of information or concepts are recorded or marked and that is capable of being read or understood by an individual or a computer system or other device. (registre)
Marginal note:Person resident in Canada
(2) For the purposes of this Part, a person is deemed to be resident in Canada at any time
(a) in the case of a corporation, if the corporation is
(i) incorporated in Canada and not continued elsewhere, or
(ii) continued in Canada;
(b) in the case of a partnership, unincorporated society, club, association or organization, or a branch thereof, if the member or participant, or a majority of the members or participants, having management and control of the person is or are resident in Canada at that time;
(c) in the case of a labour union, if it is carrying on activities as such in Canada and has a local union or branch in Canada at that time; or
(d) in the case of an individual, if the individual is deemed under any of paragraphs 250(1)(a) to (f) of the Income Tax Act to be resident in Canada at that time.
Marginal note:Arm’s length
(3) For the purposes of this Part,
(a) related persons are deemed not to deal with each other at arm’s length; and
(b) it is a question of fact whether persons not related to each other are, at any time, dealing with each other at arm’s length.
Marginal note:Related persons
(4) For the purposes of this Part, persons are related to each other if they are related persons within the meaning of subsection 6(2) of the Excise Act, 2001.
Marginal note:Administration or enforcement
(5) For greater certainty, a reference in this Part to the administration or enforcement of this Act includes the collection of any amount payable under this Act.
Marginal note:Partnerships
(6) For the purposes of this Part, anything done by a person as a member of a partnership is deemed to have been done by the partnership in the course of the partnership’s activities and not to have been done by the person.
DIVISION 1Duties of Minister
Marginal note:Minister’s duty
56 The Minister must administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.
Marginal note:Staff
57 (1) The persons that are necessary to administer and enforce this Act are to be appointed, employed or engaged in the manner authorized by law.
Marginal note:Delegation of powers
(2) The Minister may authorize any person who is employed or engaged by the Agency, or occupies a position of responsibility in the Agency, to exercise powers or perform duties of the Minister under this Act, including any judicial or quasi-judicial power or duty.
Marginal note:Administration of oaths
58 Any person, if so designated by the Minister, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of, or incidental to, the administration or enforcement of this Act, and every person so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.
Marginal note:Waiving filing of documents
59 If any provision of this Act or a regulation requires a person to file a form or other document (other than a return or a form, or other document, with respect to an election) or to provide information, prescribed by the Minister, the Minister may waive the requirement, but at the Minister’s request the person must file the document or provide the information by the date set out in the request.
DIVISION 2Returns
Marginal note:GIR filing obligation
60 (1) A GIR, in respect of a qualifying MNE group for a fiscal year, must be filed in the prescribed form and manner with the Minister on or before the GIR due date for the fiscal year by
(a) the ultimate parent entity of the MNE group, if
(i) the ultimate parent entity is located in Canada in the fiscal year, and
(ii) the MNE group does not have a designated filing entity for the fiscal year that is located in Canada;
(b) the designated filing entity in respect of the MNE group for the fiscal year, if it is located in Canada in the fiscal year; or
(c) subject to subparagraph (3)(b)(ii), each constituent entity of the MNE group that is located in Canada in the fiscal year, if
(i) neither paragraph (a) nor (b) applies,
(ii) the MNE group does not have a qualifying foreign filing entity for the fiscal year, and
(iii) neither the ultimate parent entity nor the designated filing entity in respect of the MNE group for the fiscal year that is located in a jurisdiction other than Canada files a complete or substantially complete GIR for the fiscal year, in the prescribed form and manner with the Minister, on or before the GIR due date.
Marginal note:GIR filing obligation — failure to exchange
(2) A GIR, in respect of a qualifying MNE group for a fiscal year, must be filed in prescribed manner with the Minister by each constituent entity of the MNE group that is located in Canada in the fiscal year, or the designated notification entity, within 30 days of the notification described in paragraph (b), if
(a) the competent authority of the jurisdiction where the qualifying foreign filing entity is located has not provided a complete or substantially complete GIR for the fiscal year to the Minister by the GIR exchange date for the fiscal year; and
(b) the Minister notifies the constituent entities of the MNE group that are located in Canada, or the designated notification entity, that the Minister has not received the GIR and requires it to be filed by one or more of those entities.
Marginal note:GIR — appointment of designated local entity
(3) If more than one constituent entity of a qualifying MNE group is required to file a GIR in respect of the MNE group with the Minister for a fiscal year under paragraph (1)(c),
(a) one of those constituent entities that are located in Canada may be appointed as a designated local entity, in the GIR filed with the Minister on or before the GIR due date for the fiscal year, to file the GIR, in respect of the MNE group for the year, with the Minister on behalf of all of those constituent entities; and
(b) where a designated local entity is appointed to file the GIR for the fiscal year
(i) the designated local entity must file the GIR, in respect of the MNE group for the year, with the Minister on or before the GIR due date for the fiscal year, and
(ii) if the designated local entity does so, the GIR is deemed to have been filed at that time by each of the other constituent entities of the MNE group that are located in Canada.
Marginal note:GIR notification requirement
(4) If there is a qualifying foreign filing entity in respect of a qualifying MNE group for a fiscal year that is filing the GIR in respect of the MNE group for the fiscal year with the tax authority of the jurisdiction where it is located, subject to subparagraph (5)(b)(ii), each constituent entity of the MNE group that is located in Canada must notify the Minister of the following in the prescribed form and manner on or before the GIR due date for the fiscal year:
(a) the identity of the qualifying foreign filing entity; and
(b) the jurisdiction in which the qualifying foreign filing entity is located.
Marginal note:GIR — appointment of designated notification entity
(5) If more than one constituent entity of a qualifying MNE group is required to notify the Minister for a fiscal year under subsection (4),
(a) one of those constituent entities that are located in Canada may be appointed as a designated notification entity, in the notification provided to the Minister on or before the GIR due date for the fiscal year, to notify the Minister, in respect of the MNE group for the year, on behalf of all of those constituent entities; and
(b) where a designated notification entity is appointed to provide the notification to the Minister for the fiscal year
(i) the designated notification entity must provide the notification to the Minister, in respect of the MNE group for the year, on or before the GIR due date for the fiscal year, and
(ii) if the designated notification entity provides the notification to the Minister at a time that is on or before the GIR due date for the fiscal year, the notification is deemed to have been provided at that time by each of the other constituent entities of the MNE group that are located in Canada.
- Date modified: