Paragraph 13 Effective tax rate testF1

(1)

For the purposes of paragraph 8(2)(c), “the effective tax rate test” is met for an accounting period if, on the assumption in sub-paragraph (2), the effective tax rate of the standard members of the group in the relevant territory for the period would be 15% or more.

(2)

The assumption is that for the period in question—

(a)

the adjusted profits of each specified member are equal to the revenue of the member as it would be determined under the country-by-country reporting rules, and

(b)

the covered tax balance of each specified member is equal to the member’s income tax expense as it would be determined under the country-by-country reporting rules.

Annotations

Textual amendments

F1: Sch. 16A Pt. 3 inserted (with effect in accordance with Sch. 8 para. 53(5)-(13) of the amending Act) by Finance Act 2026 (c. 11), Sch. 8 paras. 39, 53(5)-(13)

Notes on Schedule 16A

Textual amendments

F1: Sch. 16A inserted (with effect for accounting periods beginning on or after 31.12.2023 in accordance with Sch. 12 para. 1(2) of the amending Act) by Finance Act 2024 (c. 3), Sch. 12 para. 41(1)