# Finance (No. 2) Act 2023, Section 229A: Meaning of potentially undertaxed


(1) The top-up amount and additional top-up amounts of a member (“M”) of a multinational group for an accounting period are “potentially undertaxed” if—
(a) M is the ultimate parent or is located in the same territory as the ultimate parent, or
(b) the ultimate parent is not a responsible member.
(2) Subsection (1) does not apply if—
(a) the ultimate parent is not a responsible member,
(b) none of the ownership interests of the ultimate parent in M are direct ownership interests, and
(c) every indirect ownership interest the ultimate parent has in M is derived from an ownership interest the ultimate parent has in a responsible member.
(3) Subsection (1) also does not apply if—
(a) the ultimate parent is located in a territory in which a DIIR is in force and is a responsible member, and
(b) M is located in the same territory as the ultimate parent.
(4) This section and section 229B do not apply to members of a joint venture group (but see section 229I for alternative provision).

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Source: https://www.legislation.gov.uk/ukpga/2023/30/section/229A (the official version)
Page: https://openlegislation.uk/finance-no-2-act-2023/section-229A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.