Finance (No. 2) Act 2023 · Updated to 29 Dec 2023 · Chapter 14
217. Multinational Top-up Tax
Feedback & supportWithout prejudice to section 212 where a Constituent Entity—
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;
has defaulted in furnishing a return in accordance with subsection 201(1) or 202(1);
makes an incorrect return by omitting or understating any tax of which he is required by this Part to make a return on behalf of himself or another Constituent
Entity; or
gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other Constituent Entity, for any Financial Year or Financial Years (that year or those years being referred to in this section as the relevant year or relevant years), the Director General and that
Constituent Entity may come to an agreement in writing as to the payment by that Constituent Entity of a sum of money
(in this section referred to as the total amount) being—
the amount of tax which has been undercharged or not charged for that relevant year or those relevant years in consequence of such default in furnishing a return or making an incorrect return or giving any incorrect information; and
the amount of any penalty or penalties which that Constituent Entity may be required to pay for that relevant year or those relevant years pursuant to subsection 225(5) or 227(2) or both
(or where such penalty is abated or remitted under section 234 so much, if any, of the penalty which has not been abated or remitted).
Where the Director General and a Constituent Entity have come to an agreement pursuant to subsection (1), the Director General may make a composite assessment of the Domestic Top-up Tax or Multinational Top-up Tax as the case may be in respect of that Constituent Entity in the total amount.
Domestic Top-up Tax
“Domestic Top-up Tax” means tax as provided under section 159;
As soon as may be after a composite assessment of the Domestic Top-up Tax or Multinational Top-up Tax as the case may be has been made, the Director General shall cause a notice of composite assessment to be served on the Constituent Entity in respect of whom the composite assessment was made.
Multinational Top-up Tax
“Multinational Top-up Tax” means tax computed for the jurisdiction or Constituent Entity in accordance with sections 175 to 179;
Finance (No. 2)
A notice served under subsection (3) shall be in the prescribed form and shall indicate in addition to any other material included therein—
the relevant year or relevant years;
the amount or aggregate amount of tax undercharged or not charged in the relevant year or relevant years;
the amount or aggregate amount of any penalty imposed by virtue of subsection 225(5) or 227(2)
or both (or where such penalty is abated or remitted under section 234 so much, if any, of the penalty which has not been abated or remitted); and
the place at which payment of the total amount is to be made.
The total amount shall be collected as if it were part of the tax payable by the Constituent Entity in respect of whom the composite assessment of the Domestic Top-up
Tax or Multinational Top-up Tax as the case may be has been made but shall not be treated as tax so payable for the purposes of the provisions of this Part other than sections 220 to 222.
Notwithstanding any other provision of this Act—
a composite assessment of the Domestic Top-up Tax or Multinational Top-up Tax as the case may be made under this section shall be final and conclusive for the purposes of this Act; and
no appeal shall lie against a composite assessment.
Finality of Domestic Top-up Tax or Multinational Top-up