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

Related persons

Section 259NC defines when two persons are treated as "related" for the purposes of the hybrid mismatch rules.

• Two persons are considered related on any day if they are in the same control group or if the 25% investment condition is met between them.
• The 25% investment condition is met where one person (A) has a 25% investment in another person (B), or where a third person has a 25% investment in both A and B.
• Whether a person holds a 25% investment in another person is determined by the rules set out in section 259ND.
• The definition of "related" is relevant throughout the hybrid mismatch provisions, as many of the rules only apply where the parties involved are related to one another.