256AQualifying domestic top-up tax treated as not accruing where contested etc

1

Subsection (2) applies for the purposes of sections 194(2) to (7), 203(3) to (7) and 206(4) to (8) (application of QDT credits in determination of top-up amounts).

2

An amount of qualifying domestic tax accruing to a member of a multinational group is to be treated as not accruing to the member where the enforceability of the amount is in question.

3

For the purposes of this section, the enforceability of an amount of qualifying domestic top-up tax accruing to a member of a multinational group is in question if—

a

the member disputes its enforceability on any of the grounds set out in subsection (4), or

b

the tax authority of the territory in which the qualifying domestic top-up tax is imposed considers the amount unenforceable on the basis of any of those grounds.

4

Those grounds are that—

a

the amount is unenforceable on constitutional grounds or as a result of other superior law applying in the territory in which the qualifying domestic top-up tax is imposed, or

b

the amount is unenforceable as a result of a specific agreement with the government of that territory as to the tax liability of the member or the group.

5

Subsection (2) ceases to apply where the enforceability of an amount of qualifying domestic top-up tax ceases to be in question.

6

Where the enforceability of an amount of qualifying domestic top-up tax was in question, it ceases to be in question where—

a

the amount has been paid, and

b

the enforceability of the amount may no longer be disputed as a result of—

i

a settlement,

ii

the time for any appeal having passed and there being no reasonable prospect of the time being extended, or

iii

the exhaustion of any rights to appeal.