Finance (No. 2) Act 2023 · Updated to 29 Dec 2023 · Chapter 14
211. Domestic Top-up Tax or Multinational Top-up Tax assessments
Feedback & supportWhere a Constituent Entity has furnished a Top-up Tax return in accordance with section 202 to the Director General for a Reporting Financial Year, the Director General shall be deemed to have made, on the day on which the
Constituent Entity
“Constituent Entity” means— (a) any Entity that is included in a Group; or (b) any Permanent Establishment of a Main Entity that is within paragraph (a) and which is treated as separate from the Main Entity and any other Permanent Establishment of that Main Entity, but does not include an Excluded Entity;
Top-up Tax return is furnished, an assessment in respect of that Constituent Entity in the amount of Domestic Top-up Tax or Multinational Top-up Tax being the amounts as specified in the Top-up Tax return.
Top-up Tax return
“Top-up Tax return” means a return in the prescribed form as provided under section 202; Finance (No. 2)
For the purposes of this Part, where the Director General is deemed to have made an assessment under subsection (1)—
the Top-up Tax return referred to in that subsection shall be deemed to be a notice of assessment; and
the deemed notice of assessment shall be deemed to have been served on the Constituent Entity on the day on which the Director General is deemed to have made the assessment.
Where a Constituent Entity for a Financial Year has not furnished a Top-up Tax return in accordance with section 202, the Director General may according to the best of his judgment determine the amount of the Domestic Top-up
Financial Year
“Financial Year” means an accounting period with respect to which the Ultimate Parent Entity of the Multinational Enterprise Group prepares its Consolidated Financial Statements and in the case of Consolidated Financial Statements as defined in paragraph (d) of the definition of “Consolidated Financial Statements”, Financial Year means the calendar year;
Tax or Multinational Top-up Tax, of that Constituent Entity for the Financial Year and make an assessment accordingly.
The making of an assessment in respect of a Constituent
Entity under this section shall not affect any liability otherwise incurred by that Constituent Entity by reason of its failure to deliver the Top-up Tax return.
Entity
“Entity” means— (a) any legal person (other than a natural person); or (b) an arrangement that prepares separate financial accounts, such as a partnership or trust;