Kashif Javed and Greg Smythe (KPMG) review recent developments to HMRC’s draft guidance on the hybrid mismatch rules.
Recap on the hybrids rules
The legislation is located at TIOPA 2010 Part 6A and targets mismatches arising from targeted ‘hybrid characteristics’ where tax relief for the same deduction is being claimed twice or where the corresponding receipt is not being brought within the charge to tax at the relevant rate in that payee jurisdiction.
Hybrid characteristics in summary targets asymmetry in how the territories which are parties to the transaction perceive the transaction. It can include inter alia:
financial instruments which produce a deduction for payments or quasi-payments for one party with no corresponding recognition of income for the other party due to this asymmetry;
a company being regarded as opaque under one jurisdiction’s tax...
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Kashif Javed and Greg Smythe (KPMG) review recent developments to HMRC’s draft guidance on the hybrid mismatch rules.
Recap on the hybrids rules
The legislation is located at TIOPA 2010 Part 6A and targets mismatches arising from targeted ‘hybrid characteristics’ where tax relief for the same deduction is being claimed twice or where the corresponding receipt is not being brought within the charge to tax at the relevant rate in that payee jurisdiction.
Hybrid characteristics in summary targets asymmetry in how the territories which are parties to the transaction perceive the transaction. It can include inter alia:
financial instruments which produce a deduction for payments or quasi-payments for one party with no corresponding recognition of income for the other party due to this asymmetry;
a company being regarded as opaque under one jurisdiction’s tax...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
