INTM556040 | Hybrids: multinational payee (Chapter 8): conditions to be satisfied: condition B

Condition B of s259HA requires a payee to be a multinational company.

A multinational company is defined at s259HA as a company that is

• resident for tax purposes in a territory (the parent jurisdiction), and

• regarded as carrying on a business through a permanent establishment in another territory

Company is not defined in the legislation, so takes its normal meaning under UK law.

A payee is any person to whom

• a transfer of money or money’s worth is made, or

• an amount of ordinary income arises

If a company is recognised in a particular jurisdiction that does not mean that it cannot also be regarded as having a permanent establishment. Whether there is a permanent establishment is dependent on the facts, see INTM153060.