Part 3Multinational top-up tax

Chapter 5Covered tax balance

Amount of covered taxes

176Amounts to be reflected in covered tax balance

1

The amounts referred to in subsection (2) are to be reflected in a member of a multinational group’s qualifying current tax expense (to the extent they were not already reflected).

2

Those amounts are as follows—

a

any amount of covered taxes reflected in the member’s underlying profits but which (ignoring this paragraph) is not reflected in the qualifying current tax expense;

b

the total deferred tax adjustment amount (see section 182);

c

any amount of covered taxes paid, or refunded, in the current accounting period that relates to an uncertain tax position where the amount was excluded under section 175(2)(b) for a previous accounting period;

d

any amount of credit or refund in respect of a tax credit (whether refundable or not) that—

i

is not a qualifying refundable tax credit, and

ii

has not been reflected in its qualifying current tax expense in the current accounting period or a previous accounting period (see section 148);

e

any amount of covered taxes refunded or credited to the member, other than a qualifying refundable tax credit;

f

where section 187(5) applies in relation to the member, the amount of special loss deferred tax assets used, in accordance with section 187(7), by the member for the current accounting period;

g

any amount of covered taxes recorded in other comprehensive income of the member relating to amounts included in determining its adjusted profits that are subject to covered taxes under the law of the territory in which the member is located;

h

any amount of covered taxes relating to an amount reflected in the member’s adjusted profits as a result of section 146 (adjustment for changes in accounting polices and prior period errors);

i

any amount allocated to the member from another member of the multinational group.

3

For the purposes of this Part—

a

an amount of tax paid or tax expense is to be expressed as a positive number, and

b

an amount of tax credit or refund is to be expressed as a negative number.