Section 259BE | Meaning of “hybrid entity”, “investor” and “investor jurisdiction”

(1)For the purposes of this Part, an entity is “hybrid” if it meets conditions A and B.

(2)Condition A is that the entity is regarded as being a person for tax purposes under the law of any territory.

(3)Condition B is that—

(a)some or all of the entity's income or profits are treated (or would be if there were any) for the purposes of a tax charged under the law of any territory, as the income or profits of a person or persons other than the person mentioned in subsection (2), or

(b)under the law of a territory other than the one mentioned in subsection (2), the entity is not regarded as a distinct and separate person to an entity or entities that are distinct and separate persons under the law of the territory mentioned in that subsection.

(4)For the purposes of this Part—

(a)where subsection (3)(a) applies, a person who is treated as having the income or profits of the hybrid entity is an “investor” in it,

(b)where subsection (3)(b) applies, an entity that—

(i)is regarded as a distinct and separate person to the hybrid entity under the law of the territory mentioned in subsection (2), but

(ii)is not regarded as a distinct and separate person to the hybrid entity under the law of another territory,

is an “investor” in the hybrid entity, and

(c)any territory under the law of which an investor is within the charge to a tax is an “investor jurisdiction” in relation to that investor.