[259DC Hybrid transfer deduction/non-inclusion mismatches and their extent]
Taxation (International and Other Provisions) Act 2010 (2010 c 8) | Legislation

[259DC  Hybrid transfer deduction/non-inclusion mismatches and their extent]

[(1)     There is a “hybrid transfer deduction/non-inclusion mismatch”, in relation to a payment or quasi-payment, if either or both of case 1 or 2 applies.

(2)     Case 1 applies where—

(a)     the relevant deduction exceeds the sum of the amounts of ordinary income that, by reason of the payment or quasi-payment, arise to each payee for a permitted taxable period, and

(b)     all or part of that excess arises for a reason mentioned in subsection (8).

(3)     Subject to subsection (9), for the purposes of subsection (2)(b)—

(a)     it does not matter whether the excess or part arises for another reason as well (even if it would have arisen for that other reason regardless of any reasons mentioned in subsection (8)), and

(b)     an excess or part of an excess is to be taken to arise for a reason mentioned in subsection (8) (so far as would not otherwise be the case) if, on making such of the relevant assumptions in relation to each payee as apply in relation to that payee (see subsections (4) and (5))), it could arise for a reason mentioned

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