INTM555040 - Hybrids: hybrid payee (Chapter 7): conditions to be satisfied: condition B

Condition B of s259GA TIOPA 2010 requires a payee to be a hybrid entity (a hybrid payee).

A payee is any person to whom

• a transfer of money or money’s worth is made, or
• an amount of ordinary income arises

A hybrid entity is defined at s259BE as an entity that is regarded as a distinct and separate person for tax purposes under the law of any territory, but

• its income or profits are treated wholly or partly as the income or profits of another person (or would be if there were any), or
• it is not regarded as a distinct and separate person for tax purposes under the law of another territory

See INTM550580 for further details on the definition of a hybrid entity.