SolvedSection 128 | Responsible members
From legislation.gov.uk
(1)The ultimate parent of a multinational group is a responsible member of that group if it is subject to Pillar Two IIR tax.
(2)An ultimate parent that is a responsible member of a multinational group is responsible for all of the members of the group that are not located in the territory the ultimate parent is located in.F1F2
(3)An intermediate parent member of a multinational group (see section 237(2)) that is located in a Pillar Two territory is a responsible member of that group if it is subject to Pillar Two IIR tax and—
(a)no intermediate parent member of that group that is subject to Pillar Two IIR tax has a controlling interest in it,
(b)the ultimate parent is not subject to Pillar Two IIR tax, and
(c)at least one member of the group in which it has an ownership interest, or a permanent establishment for which it is the main entity, has a top-up amount or an additional top-up amount.F3
(4)Such an intermediate parent member is responsible for —F4
(a)every permanent establishment for which it is the main entity, ...F4F5
(b)all of the members of the group it has an ownership interest in that are not located in the territory it is located in , andF4F6
(c)every permanent establishment of a member of the group it has an ownership interest in other than a permanent establishment located in the territory it is located in.F6
(5)A partially-owned parent member of a multinational group (see section 237(1)) that is located in a Pillar Two territory is a responsible member if it is subject to Pillar Two IIR tax and—
(a)it is not wholly owned by another partially-owned parent member of that group that is subject to Pillar Two IIR tax, and
(b)at least one member of the group in which it has an ownership interest, or a permanent establishment for which it is the main entity, has a top-up amount or an additional top-up amount.F7
(6)Such a partially owned parent member is responsible for —F8
(a)every permanent establishment for which it is the main entity, ...F8F9
(b)all of the members of the group it has an ownership interest in that are not located in the same territory it is located in , andF8F10
(c)every permanent establishment of a member of the group it has an ownership interest in other than a permanent establishment located in the territory it is located in.F10
(7)For the purposes of this Part an entity is subject to Pillar Two IIR tax for an accounting period if—F11
(a)the period commences on or after 31 December 2023 and the entity is located in the United Kingdom and is not an excluded entity, orF12
(b)the entity—
(i)is located in another Pillar Two territory in which a tax equivalent to the IIR provisions of multinational top-up tax is in force for the period, andF13F14
(ii)is not excluded from the application of that tax as a result of provision equivalent to section 127.
(7A)If for an accounting period—F15
(a)the application in relation to an entity located in a territory of a tax equivalent to the IIR provisions of multinational top-up tax depends on the making by any person of an election or claim, andF15
(b)the tax does not apply in relation to the entity because such an election or claim is or is not made,F15
subsection (7)(b)(i) has effect in relation to the entity as though the tax were not in force in the territory for the period.
(8)In this section the “IIR provisions of multinational top-up tax” means the provisions of this Part relating to the charging of top-up amounts and additional top-up amounts (but not untaxed amounts).F16