Part 3Multinational top-up tax

Chapter 8Further adjustments

Restructuring of groups

210Transfer of assets or liabilities from a member of a multinational group

1

Where a member of a multinational group transfers assets or liabilities to another entity in the course of a qualifying reorganisation (see section 212), any gain or loss on the transfer is to be excluded from the adjusted profits of the member, except to the extent it is a non-qualifying gain or loss.

2

In this section, and in sections 211 and 212, “non-qualifying gain or loss” means a gain or loss of the transferee on the transfer of assets or liabilities, and is the lesser of—

a

the amount of that gain or loss that is subject to tax in the territory the transferee is located in, and

b

the amount of that gain or loss reflected in the underlying profits accounts of the transferee.