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(1) Years 1 to 4: 

Neither ACo Group nor BCo Group is "within scope" of the GloBE rules because neither group satisfies the consolidated revenue threshold test in those years: Art. 1.1.1. 

(2) Year 5: 

ACo’s acquisition of all of the shares in BCo qualifies as a "merger", as defined in Art. 6.1.2(b), despite the fact that the acquisition was for cash consideration: see Commentary. 

Thus, Art. 6.1.1(b) will apply to amend the consolidated revenue threshold test in Art. 1.1, for Years 1 to 4. Under that amended test, the separate consolidated revenues of the ACo Group and the BCo Group for Years 1 to 4 are aggregated ("the sum"). Importantly, the ACo Group revenue of 150 from sales to the BCo Group in Year 1 is not ignored. Thus, the aggregate revenues are: Year 1: 800; Year 2: 700; Year 3: 720; and Year 4: 860. 

Accordingly, the ACo Group will satisfy the "at least 2 years out of the previous 4 years" amended consolidated revenue threshold test (in Years 1 and 4), and therefore the ACo Group will be “within scope” of the GloBE rules in Year 5. 

(3) Year 6: 

ACo's distribution of all of the shares in BCo, to ACo's shareholders, qualifies as a "demerger", as defined in Art. 6.1.3.

 A pre-condition to apply Art. 6.1.1(c) is that there is a single MNE Group which is "within scope" of the GloBE rules. According to the Commentary, the single MNE Group must be “within the scope of the GloBE Rules in the Fiscal Year that the demerger takes place”. That means Year 6. Under the amended consolidated revenue threshold test (see above), the ACo Group would satisfy the “at least 2 years out of the previous 4 years” standard, in Years 4 & 5. 

Subpara. (i) of Art. 6.1.1(c) will apply a consolidated revenue threshold test to each of the 2 demerged Groups (ACo Group and BCo Group), by considering only the consolidated revenue of that demerged Group in Year 6. BCo Group will satisfy this test (i.e., 760). However, the ACo Group will not satisfy the test (i.e., 200). 

Thus, in Year 6, the BCo Group will be "within scope" of the GloBE rules, but the ACo Group will not. 

You will notice that Art. 6.1.1(c) treats the ACo Group in Year 6 differently (a) before the demerger (when the ACo Group is required to be "within scope", as a pre-condition for Art. 6.1.1(c) to apply); and (b) after the demerger (when the demerged ACo Group has been found to be not "within scope"). 

(4) Final answer: 

Years 1 to 4: neither Group is "within scope" 

Year 5: ACo Group is "within scope" 

Year 6: BCo Group is "within scope" 

Do you agree?