MTT25320 - Calculating the effective tax rate: Covered tax balance: Recalculation where covered taxes not paid

Where covered taxes have not been paid, a recalculation may be required, in accordance with section 219 of Finance (No.2) Act 2023.

Recalculations are required when:

The following amounts must be recalculated to exclude the unpaid amount:

  • the effective tax rate for the member’s territory.
  • the top-up amounts of the members in that territory (see MTT31000+).

Where a recalculation results in an additional top-up tax amount, that amount is to be treated in accordance with section 206 of the Act (see MTT33200).