‘Disqualified refundable imputation tax’ means any tax, other than a qualified imputation tax, accrued to, or paid by, a constituent entity that is:

(a)   refundable to the beneficial owner of a dividend distributed by such constituent entity in respect of that dividend or creditable by the beneficial owner against a tax liability other than a tax liability in respect of such dividend; or

(b)   refundable to the distributing company upon distribution of a dividend to a shareholder.

For the purpose of this definition, a qualified imputation tax means a covered tax accrued to, or paid by, a constituent entity or a permanent establishment, that is refundable or creditable to, respectively, the recipient of the dividend distributed by the constituent entity or by the main entity, provided that the refund is payable, or the credit is provided:

(a)   by a jurisdiction other than the jurisdiction which imposed the covered taxes;

(b)   to a corporate beneficial owner of the dividend that is subject to tax at a nominal rate that equals or exceeds the minimum tax rate on the dividend received under the domestic law of the jurisdiction which imposed the covered taxes on the constituent entity;

(c)   to an individual who is the beneficial owner of the dividend and tax resident in the jurisdiction which imposed the covered taxes on the constituent entity and who is subject to tax at a nominal rate that equals or exceeds the standard tax rate applicable to ordinary income; or

(d)   to a governmental entity, an international organisation, a non-profit organisation, a pension fund, an investment entity that is not part of the MNE group or a life insurance company to the extent that the dividend is received in connection with pension fund activities that is subject to tax in the same manner as a pension fund.

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