Part 3Multinational top-up tax
Chapter 4Calculation of adjusted profits of members of a multinational group
Adjustments of underlying profits
148Treatment of qualifying refundable tax credits
1
The underlying profits of a member of a multinational group are to be adjusted (if necessary) to secure that—
a
qualifying refundable tax credits are treated as income, and
b
other tax credits (refundable or otherwise) are not treated as income.
2
A refundable tax credit is “qualifying” to the extent that, under the law of the territory in which it is given, it entitles a person to receive (by way of payment or discharge of liability) the amount of the refundable tax credit within 4 years of meeting the conditions for receiving it.
3
But a refundable tax credit is never qualifying if it is creditable or refundable pursuant to a qualified refundable imputation tax or a disqualified refundable imputation tax (see section 253).
4
In this Part “refundable tax credit” means a tax credit which—
a
after any liability to covered taxes has been reduced or discharged by it, or
b
in the absence of any tax liability to covered taxes,
is payable in cash or cash equivalents (which for these purposes includes by way of discharge against a liability to a tax which is not a covered tax).