Section 220 | Top-up amount of investment entity ^F1

(1)The top-up amount for an accounting period of a member of a multinational group that is an investment entity is, subject to subsection (2), determined by taking the following steps—^F2

Step 1Determine the adjusted profits (if any) of the entity for the period in accordance with Chapter 4. If the adjusted profits are nil or less, the top-up amount is nil. Otherwise, proceed to Step 2.

Step 2Adjust the result of Step 1 in accordance with section 223 (to the extent applicable). If the adjusted result is nil, the top-up amount is nil. Otherwise, proceed to Step 3.

Step 3Determine the substance-based income exclusion for the entity for the period (see section 221).

Step 4Adjust the result of Step 3 in accordance with section 223 (to the extent applicable).

Step 5Subtract the result of Step 4 from the result of Step 2. If the result is nil or less, the top-up amount is nil. Otherwise, proceed to Step 6.

Step 6Determine the investment entity effective tax rate for the territory for the period (see section 222).

Step 7Subtract the result of Step 6 from 15%. If the result is nil or less, the top-up amount is nil. Otherwise, proceed to Step 8.

Step 8Multiply the result of Step 7 by the result of Step 5. This is the top-up amount for the entity , unless the entity has a positive undistributed income amount (see sections 214 and 215) for the period (in which case proceed to Step 9).

(2)Repealed^F3

(3)For the purposes of applying Chapter 4 in relation to an investment entity, the references in that Chapter to “standard members” of a multinational group are instead to members of the multinational group that are investment entities.^F4