Section 169 | Certain non tax resident entities to be treated as flow-through entities

(1)This section applies to a member of a multinational group that—

(a)is not tax resident in any territory,

(b)is not subject to covered taxes,

(c)does not have a place of business in the territory where it is created, and

(d)is not regarded as tax transparent in the territory in which it is created.

(2)A member of a multinational group to which this section applies is to be treated as being regarded as tax transparent in the territory it is created in to the extent that—^F1

(a)it is regarded as tax transparent in the territory in which holders of direct ownership interests in the member are located, and^F2F3

(b)its income, expenditure, profits and losses are not attributable to a permanent establishment.

(3)Accordingly, such a member is to be treated as a flow-through entity.