Definition

(1) In this Part, unless the context otherwise requires“constituent entity” means– (a) any separate business unit of an MNE group that is included in the consolidated financial statements for financial reporting purposes, or would be so included if equity interests in such business unit of an MNE Group were traded on a public securities exchange; (b) any separate business unit that is excluded from the MNE group’s consolidated financial statements solely on size or materiality grounds; or (c) any permanent establishment of any separate business unit of the MNE group included in paragraph (a) or (b) provided the business unit prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes; “Department” means the Belize Tax Service Department established pursuant to section 5(2) of the Tax Administration and Procedure Act; “excluded MNE group” means a group that is not required to file a CbC report on the basis that the annual consolidated group revenue of the group during the financial year immediately preceding the reporting financial year, as reflected in its Mutual Administrative Assistance consolidated financial statements for such preceding financial year, is below the threshold stipulated in section 8C(4); “financial year” of an MNE group, means an annual accounting period with respect to which the ultimate parent entity of the MNE group prepares its financial statements; “group” means a collection of enterprises related through ownership or control such that it is either required to prepare consolidated financial statements for financial reporting purposes under applicable accounting principles or would be so required if equity interest in any of the enterprises were traded on a public securities exchange; “multinational enterprise group” or “MNE group” means any group that– (a) includes two or more enterprises the tax residence for which is in different jurisdictions, or includes an enterprise that is resident for tax purposes in one jurisdiction and is subject to tax with respect to the business carried out through a permanent establishment in another jurisdiction; and (b) is not an excluded MNE group; “reporting entity” means the constituent entity that, by virtue of tax residence, is required to file the CbC report and has capacity to file on behalf of the MNE group; “surrogate parent entity” means a constituent entity of an MNE group that has been appointed by the MNE group in substitution for the ultimate parent entity to file the CbC report on behalf of the MNE group; Mutual Administrative Assistance “systemic failure” means, with respect to a jurisdiction, that the jurisdiction has a competent authority agreement in effect with Belize, but– (a) has suspended automatic exchange (for reasons other than those that are in accordance with the terms of the agreement); or (b) has persistently failed to automatically provide CbC reports in its possession to Belize in respect of MNE groups that have constituent entities in “ultimate parent entity” means a constituent entity of an MNE group that meets the following conditions– (a) the constituent entity holds directly or indirectly a sufficient interest in one or more constituent entities of the MNE group so that it is required to prepare consolidated financial statements under accounting principles generally applied in its jurisdiction of residence, or would be so required if its equity interests were traded on an Approved Stock Exchange or other public securities exchange in its jurisdiction of residence; and (b) no other constituent entity of the MNE group holds, directly or indirectly, an interest in it that is described in paragraph (a). (2) For the purposes of this Part, if an ultimate parent entity is a partnership, it is deemed to be residentDetermination of residence ultimate parent entity. (a) if it is, under the laws of another jurisdiction, resident in that other jurisdiction for tax purposes, in that other jurisdiction; and Mutual Administrative Assistance (b) in any other case, in the jurisdiction under the law of which it was incorporated or organized.