(1)Where the standard members of a multinational group in a territory have a collective additional amount under section 203, an amount of that amount is to be allocated to each member that has a negative covered tax balance, expressed as a negative number, which is less than the adjusted profits of that member (which may be positive or negative) multiplied by 15%.
(2)To determine the amount of the collective additional amount to be allocated to each such member, take the following steps—
Step 1
For each such member determine the amount given by subtracting the member’s negative covered tax balance, expressed as a negative number, from its adjusted profits multiplied by 15%.
Step 2
Add together the amounts determined under Step 1.
Step 3
For each such member, divide the amount determined for that member under Step 1 by the result of Step 2.
Step 4
Allocate to each member the amount given by multiplying the result of Step 3 for that member by the collective additional amount.
(3)For the purposes of this Part, an amount of a collective additional amount allocated to a member of a multinational group under this section is an additional top-up amount.
(4)Chapter 7 (allocation of top-up amounts to responsible members) applies to an additional top-up amount allocated to a member of a multinational group under this section as it applies to a top-up amount of that member as if the adjusted profits of that member were the amount given by dividing the additional top-up amount by 15%.