Taxation (International and Other Provisions) Act 2010 section 259BE

Meaning of "hybrid entity", "investor" and "investor jurisdiction"

Section 259BE defines three key terms used throughout the hybrid mismatch rules: "hybrid entity", "investor" and "investor jurisdiction".

• A hybrid entity is one that is recognised as a taxable person in one territory but whose income or profits are attributed to someone else for tax purposes, or which is not seen as a separate entity in another territory
• An investor is either the person to whom the hybrid entity's income or profits are attributed, or an entity that is treated as separate from the hybrid entity in one territory but not in another
• An investor jurisdiction is any territory in which an investor is subject to tax
• The hybrid nature arises from the mismatch in how different territories treat the same entity for tax purposes