Revenue eBrief No. 137/22

29 June 2022

Guidance on the Anti-hybrid rules

Tax and Duty Manual Part 35C-00-01 - Guidance on the Anti-hybrid rules - has been updated for Finance Act 2021 to reflect amendments to:

• Section 3: Interpretation (Section 835Z) for the broadening of the definition of “entity” to include forms of business that do not have legal personality,
• Section 5: Worldwide system of taxation (Section 835AB) for the broadening of the scope of that section to include situations where an individual payee or investor is subject to a system, or effective system, of worldwide taxation,
• Section 7: Associated enterprises (Section 835AA) for updates made to paragraph (e) and (f) of subsection (2) to ensure the provision operates as intended and the insertion of a new segment setting out the application of the "associated enterprises" test to Irish partnerships,

and the insertion of a new section:

• Section 12: Reverse hybrid rule to reflect the introduction of Chapter 10A Reverse hybrid mismatches into Part 35C in line with the deadline prescribed by ATAD2.
• The section sets out relevant definitions and provides guidance on the operation of the rule.