2‑40 Domestic Top‑up Tax Amount—special 2‑40 Domestic Top‑up Tax Amount—special rule for consolidated groups

2‑40 Domestic Top‑up Tax Amount—special rule for consolidated groups

(1) Subsection (2) applies if: (a) either of the following is a subsidiary member of a consolidated group: (i) a Constituent Entity of an MNE Group; (ii) a JV Subsidiary of a Joint Venture of an MNE Group; and (b) the head company of the consolidated group is not an Excluded Entity or a Securitisation Entity for the Fiscal Year. (2) Despite section 2‑30, the Constituent Entity’s or the JV Subsidiary’s (as the case requires) Domestic Top‑up Tax Amount for the Fiscal Year is taken to be reduced to zero. (3) Subsection (4) applies if: (a) any of the following is the head company of a consolidated group: (i) a Constituent Entity of an MNE Group; (ii) a Joint Venture of an MNE Group; (iii) a JV Subsidiary of a Joint Venture of an MNE Group; and (b) the head company of the consolidated group is not an Excluded Entity or a Securitisation Entity for the Fiscal Year. (4) The amount of the head company’s Domestic Top‑up Tax Amount for the Fiscal Year is taken to be increased by the amount of each reduction under subsection (2) of this section (if any) in respect of a subsidiary member of the consolidated group. (5) This section applies in relation to a MEC group in the same way in which it applies in relation to a consolidated group. (6) The following terms have the same meaning in this section as they do in the Income Tax Assessment Act 1997: (a) consolidated group; (b) head company; (c) MEC group; (d) subsidiary member.