2. Int'l Tax Update Significant Developments in the Global Tax System - Andrew Seidler
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US Hybrid Counteraction<br />
The Act denies a deduction for any disqualified<br />
related party amount paid or accrued pursuant<br />
to a hybrid transaction or by or to a hybrid<br />
entity.<br />
US hybrid<br />
entity<br />
US<br />
Disqualified<br />
related party<br />
amount<br />
Interest<br />
A “disqualified related party amount” is any<br />
<strong>in</strong>terest or royalty paid to a related party where<br />
<strong>the</strong> related party<br />
• does not <strong>in</strong>clude <strong>the</strong> payment <strong>in</strong> its <strong>in</strong>come<br />
<strong>in</strong> <strong>the</strong> country <strong>in</strong> which it is a resident or<br />
• is allowed a deduction with respect to <strong>the</strong><br />
amount <strong>in</strong> <strong>the</strong> country <strong>in</strong> which it is a<br />
resident.<br />
Acquisition<br />
UK<br />
Holdco<br />
Non-US Affiliate<br />
UK<br />
Interest<br />
group relief<br />
Treasury Regulations expected.
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