Section 222 | Investment entity effective tax rate

The investment entity effective tax rate in a territory for an accounting period is determined by taking the following steps—^F1

Step 1Determine the adjusted profits made by each of the investment entities in the territory, as determined under Chapter 4 and adjusted under section 223.

Step 2Subtract the sum of the losses of those investment entities that made a loss in that period from the sum of the profits of those investment entities that made a profit in that period.

Step 3If the result of Step 2 is nil or less, the investment entity effective tax rate is to be treated as 15%. Otherwise, proceed to Step 4.

Step 4Determine the covered tax balance of each such investment entity in accordance with Chapter 5.

Step 5Adjust the amounts determined in Step 4 in accordance with section 223 (to the extent applicable).

Step 6Add together the amounts determined in Step 5 that are adjusted positive covered tax balances.

Step 7Add together the amounts determined in Step 5 that are adjusted negative covered tax balances.

Step 8Subtract the result of Step 7 from the result of Step 6.

Step 9Divide the result of Step 8 by the result of Step 2. This is the investment entity effective tax rate.