Section 203 | Additional top-up amounts where covered taxes less than expected

(1)This section applies in an accounting period in relation to standard members of a multinational group in a territory where—

(a)those members have a collective loss for that period, and

(b)the combined covered tax balance for those members for the current period is less than nil, and

(c)the collective negative covered tax balance expressed as a positive number is greater than the amount given by multiplying the collective loss expressed as a positive number by 15% (“the expected covered tax amount”).

(2)Where this section applies, those members in that territory collectively have an additional top-up amount (a “collective additional amount”) equal to the difference between the expected covered tax amount and the combined covered tax balance.

(3)Where those members have a QDT credit for the accounting period, the collective additional amount under this section is to be reduced in accordance with subsections (4) to (7).

(4)Where—

(a)the standard members do not have a collective additional amount under section 206 for the period, and

(b)the collective additional amount under this section (before any reduction) is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,^F1

the collective additional amount under this section is to be reduced by the sum of those accrued amounts.

(5)Where—

(a)the standard members do not have a collective additional amount under section 206 for the period, and

(b)the collective additional amount under this section (before any reduction) is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,^F2

the collective additional amount under this section is to be reduced to nil.

(6)Where—

(a)the standard members have a collective additional amount under section 206 for the period, and

(b)the sum of the collective additional amount under this section (before any reduction) and the collective additional amount under section 206 is less than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,^F3

the collective additional amount under this section is to be reduced to nil.

(7)Where—

(a)the standard members have a collective additional amount under section 206 for the period, and

(b)the sum of the collective additional amount under this section (before any reduction) and the collective additional amount under section 206 is equal to or greater than the sum of amounts of qualifying domestic top-up tax accrued by those members in that period,^F4

the collective additional amount under this section is to be reduced by the amount given by multiplying the sum of those amounts of qualifying domestic top-up tax by the amount given by dividing the collective additional amount under this section by the sum of that collective additional amount and the collective additional amount under section 206.