Section 259BE | Meaning of “hybrid entity”, “investor” and “investor jurisdiction” ^F1

(1)For the purposes of this Part, an entity is “hybrid” if it meets conditions A and B.^F1

(2)Condition A is that the entity is regarded as being a person for tax purposes under the law of any territory.^F1

(3)Condition B is that—^F1

(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^F1

(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.^F1

(4)For the purposes of this Part—^F1

(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,^F1

(b)where subsection (3)(b) applies, an entity that—^F1

(i)is regarded as a distinct and separate person to the hybrid entity under the law of the territory mentioned in subsection (2), but^F1

(ii)is not regarded as a distinct and separate person to the hybrid entity under the law of another territory,^F1

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.^F1