(1)Where this section applies to the standard members of a multinational group in a territory for an accounting period, those members have a deemed distribution tax amount for that period.
(2)The deemed distribution tax amount is the lesser of—
(a)the amount that, when added to the result of Step 4 in section 132(1), would result in the effective tax rate of those members for that period being 15%, and
(b)the amount of tax that would have been due in that territory if all of those members had distributed all of their profits of that period.
(3)The combined covered tax balance of those members for that period, as determined under Step 4 in section 132(1), is to be increased by adding that deemed distribution tax amount.
(4)In the following accounting period, those members have a “recapture amount” in respect of the previous accounting period that is (initially) equal to the deemed distribution tax amount for that period.
(5)Those members continue to have a recapture amount in respect of an accounting period until the earlier of—
(a)the end of the fourth accounting period after the period in which the recapture amount first arose, and
(b)the time when the recapture amount has reduced to nil.
(6)Section 191 sets out how recapture amounts reduce.
(7)If the recapture amount in respect of an accounting period has not reduced to nil by the end of the fourth accounting period after that period the following are to be recalculated for the period in which the recapture amount arose, with the amount of the recapture amount remaining subtracted from the combined covered tax balance (after the addition of the deemed distribution tax amount)—
(a)the effective tax rate for those members, and
(b)the top-up amounts that those members would have following that recalculation.