Section 229A | Meaning of potentially undertaxed ^F1

(1)The top-up amount and additional top-up amounts of a member (“M”) of a multinational group for an accounting period are “potentially undertaxed” if—

(a)M is the ultimate parent or is located in the same territory as the ultimate parent, or

(b)the ultimate parent is not a responsible member.

(2)Subsection (1) does not apply if—

(a)the ultimate parent is not a responsible member,

(b)none of the ownership interests of the ultimate parent in M are direct ownership interests, and

(c)every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.

(3)Subsection (1) also does not apply if—

(a)the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and

(b)M is located in the same territory as the ultimate parent.

(4)This section and section 229B do not apply to members of a joint venture group (but see section 229I for alternative provision).