Taxes Consolidation Act 1997 section 111K

Effect of qualified domestic top-up tax

Section 111K deals with the treatment of additional top-up tax where a jurisdiction does not apply a qualified domestic top-up tax, and sets out rules for unpaid domestic top-up tax and permissible accounting standards.

• Where a Member State does not apply a qualified domestic top-up tax to collect additional top-up tax arising from adjustments to covered taxes or qualifying income for a prior fiscal year, the additional top-up tax is calculated under section 111AF and treated as jurisdictional top-up tax under section 111AD(3).
• If a qualified domestic top-up tax remains unpaid for four fiscal years after the year in which it was due, the unpaid amount is added to the jurisdictional top-up tax for the jurisdiction where the constituent entity is located.
• When a Member State or third country jurisdiction applies a qualified domestic top-up tax, the financial accounting net income or loss of constituent entities in that jurisdiction may be determined using either an acceptable financial accounting standard, or a different authorised standard, provided adjustments are made to prevent any material competitive distortion.
• If a domestic top-up tax owed by a qualifying entity has not been paid to and collected by the Collector-General within four fiscal years after the year it was due, that amount ceases to be due and payable to the Revenue Commissioners.