Part 3Multinational top-up tax
Chapter 8Further adjustments
Additional top-up amounts on recalculations
206Additional top-up amounts where recalculations required
(1)
This section applies to the standard members F1(“the current members”) of a multinational group in an accounting period (“the current period”) in a territory where—
(a)
a recalculation is required in the current period in relation to one or more previous accounting periods (each a “prior period”) as a result of any of the following sections—
(i)
(ii)
(iii)
(iv)
section 219(1), or
(b)
the F2current members have a special additional top-up tax amount under section 192 for the current period.
(2)
Where—
(a)
the sum of the top-up amounts that F3the standard members of the group in the territory in a prior period would have for that period, determined in accordance with a recalculation required under one of the sections mentioned in subsection (1)(a), is greater than the sum of the top-up amounts those members had for that prior period, or
(b)
this section applies as a result of subsection (1)(b) (whether or not it also applies as a result of subsection (1)(a)),
the F4current members collectively have an additional top-up amount (a “collective additional amount”) under this section for the current period.
(3)
Take the following steps to determine the collective additional amount under this section—
Step 1
Where one or more recalculations are required in accordance with any of the sections mentioned in subsection (1)(a), for each prior period carry out the recalculation or recalculations required in respect of that period to establish the top-up amounts F5the standard members of the group in the territory for the prior period would have had for that period (taking account of all recalculations required for that period).
Step 2
For each prior period, subtract the sum of the top-up amounts those members had for that prior period from the sum of top-up amounts that those members would have for that period.
Step 3
Add together all of the results of Step 2 that are greater than nil F6(and if there are no such results, the result of this step is nil).
Step 4
Where the F7current members have a special additional top-up tax amount under section 192 for the current period, add that amount to the result of F8Step 3 (which may be nil).
(4)
Where F9the current members have a QDT credit for the accounting period, the collective additional amount under this section is to be reduced F10as follows)
(5)
Where—
(a)
the F11current members do not have a collective additional amount under section 203 for the F12current period,
(b)
the total top-up amount for the current period for the F13current members is nil, and
(c)
the collective additional amount under this section (before F14any reduction) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced by the sum of those accrued amounts.
(6)
Where—
(a)
the F15current members do not have a collective additional amount under section 203 for the F16current period,
(b)
the total top-up amount for the current period for the F17current members is nil, and
(c)
the collective additional amount under this section (before F18any reduction) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced to nil.
(7)
Where—
(a)
the F19current members have a collective additional amount under section 203 for the F20current period or the total top-up amount for the current period for F21the current members is greater than nil, and
(b)
the sum of the collective additional amount under this section (before F22any reduction), any collective additional amount under section 203 and the total top-up amount for the current period for the F23current members is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced to nil.
(8)
Where—
(a)
the F24current members have a collective additional amount under section 203 for the period or the total top-up amount for the current period for F25the current members is greater than nil, and
(b)
the sum of the collective additional amount under this section (before F26any reduction), any collective additional amount under section 203 and the total top-up amount for the current period for the F27current members is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,
the collective additional amount under this section is to be reduced by the F28relevant amount.
F29(9)
The relevant amount is the amount given by multiplying—
(a)
the sum of the amounts of qualifying domestic top-up tax accrued by the current members in the current period, by
(b)
the amount given by dividing—
(i)
the collective additional amount under this section, by
(ii)
the sum of that collective additional amount, any collective additional amount under section 203 and the total top-up amount for the current period.