111AAAD.  Elections

(1) An election, and a withdrawal of an election, referred to in this Part shall be made on a top-up tax information return prepared and delivered in accordance with section 111AAI on or before the specified return date for the fiscal year in respect of which the election or the withdrawal relates.

(2) (a) Subject to subsection (5), the elections referred to in column (1) of the Table to this section shall have effect for a period of 5 fiscal years, (in this subsection referred to as ‘the effective period’), beginning on the first day of the fiscal year in respect of which the election is made, and remain in effect for subsequent effective periods, other than where the filing constituent entity withdraws the election on the top-up tax information return in respect of the fiscal year beginning immediately after the end of an effective period.

(b) The withdrawal of an election referred to in paragraph (a) shall be in effect for an effective period beginning on the first day of the fiscal year (referred to in this paragraph as the ‘withdrawal year’) falling immediately after the last day of the fiscal year in respect of which a previous election was in effect, and a filing constituent entity shall not make a new election of the type withdrawn in respect of any of the 4 fiscal years immediately following the withdrawal year.

(3) The elections referred to in column (2) of the Table to this section shall be in effect for the fiscal year in respect of which that election was made and shall remain in effect for subsequent fiscal years, other than where the filing constituent entity withdraws the election in respect of a fiscal year subsequent to the fiscal year in respect of which the election is made.

(4) The election referred to in section 111P(16) shall be made in respect of each debt release which is included in the financial accounting net income or loss of a constituent entity in a fiscal year.

(5) The election referred to in section 111W(2), shall not be withdrawn where a loss in respect of an ownership interest, other than a qualified ownership interest as referred to in that section, was included in the calculation of the qualifying income or loss of the constituent entity in the five-year period beginning on the first day of the fiscal year in respect of which the election was made.

(6) An election under section 111AN(6) shall—

(a) be in effect for the fiscal year in respect of which the election relates,

(b) remain in effect for all subsequent fiscal years, and

(c) not be withdrawn at any time following the fiscal year in respect of which the election is made.

(7) An election under section 111AJ(2) shall apply to the fiscal year in respect of which the election is made.

(8) An election under section 111AK(2) shall apply to the transition period fiscal year (within the meaning of section 111AK) in respect of which the election is made.

(9) An election under section 111AI(2) shall apply to the fiscal year in respect of which the election is made.

(10) Where a filing constituent entity makes an election referred to in subsection (7), (8) or (9), as the case may be, such election shall not apply where—

(a) the constituent entity, joint venture or joint venture affiliate, as the case may be, concerned—

(i) is located in the State, and

(ii) could be allocated a top-up tax if the effective tax rate for the jurisdiction concerned calculated in accordance with Chapter 5 was below the minimum tax rate,

and

(b) the constituent entity, joint venture or joint venture affiliate, as the case may be, concerned fails to clarify and demonstrate, within the permitted period of 6 months referred to in subparagraph (ii), that the facts and circumstances, referred to in subparagraph (i), did not materially affect its eligibility to make the election, where a Revenue officer in writing—

(i) notified the constituent entity, joint venture or joint venture affiliate, as the case may be, not later than 36 months after the date of the filing of the top-up tax information return in which the relevant election was made of specific facts and circumstances that may have materially affected the eligibility to make the relevant election, and

(ii) requested the constituent entity, joint venture or joint venture affiliate, as the case may be, to, not later than 6 months after the date of notification under this paragraph, clarify and demonstrate, in writing, the effect of those facts and circumstances on the eligibility to make the relevant election.