Section 201 Inclusion ratio

A responsible member’s inclusion ratio for a member with a top-up amount (“the relevant member”) is found as follows—

• Step 1

  Determine the adjusted profits of the relevant member with the top-up amount (in accordance with Chapter 4).

• Step 2

  Determine how much of those profits are attributable to ownership interests held by F1individuals and entities other than the responsible member F2, but excluding ownership interests in respect of which an amount has been excluded from the relevant member’s adjusted profits.

• Step 3

  Subtract the amount determined under Step 2 from the amount determined under Step 1.

• Step 4

  The inclusion ratio is given by dividing the amount determined under Step 3 by the amount determined under Step 1 .

The amount of profits of the relevant member attributable to ownership interests held by F3individuals and entities other than the responsible member is the amount that would, in hypothetical consolidated financial statements prepared by the responsible member (whether or not it actually prepared consolidated financial statements), have been treated in those statements as attributable to such F4individuals and entities under the principles of the authorised accounting standard used, or treated as used (see section 249(1)(d)), in the ultimate parent’s consolidated financial statements.

For the purposes of determining what that amount would be in those hypothetical consolidated financial statements of the responsible member, use the following assumptions—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .