# Finance (No. 2) Act 2023, Paragraph 13: Effective tax rate test


(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.

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Source: https://www.legislation.gov.uk/ukpga/2023/30/schedule/16A/paragraph/13 (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/schedule-16A/paragraph-13
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.