- collective investment vehicle
means an investment fund or vehicle that is widely held, holds a diversified portfolio of securities and is subject to investor-protection regulation in the country in which it is established.Article 9bTax residency mismatchesTo the extent that a deduction for payment, expenses or losses of a taxpayer who is resident for tax purposes in two or more jurisdictions is deductible from the tax base in both jurisdictions, the Member State of the taxpayer shall deny the deduction to the extent that the other jurisdiction allows the duplicate deduction to be set off against income that is not dual-inclusion income.
- consolidated group for financial accounting purposes
means a group consisting of all entities which are fully included in consolidated financial statements drawn up in accordance with the International Financial Reporting Standards or the national financial reporting system of a Member State;
- deduction
means the amount that is treated as deductible from the taxable income under the laws of the payer or investor jurisdiction.
- deduction without inclusion
means the deduction of a payment or deemed payment between the head office and permanent establishment or between two or more permanent establishments in any jurisdiction in which that payment or deemed payment is treated as made (payer jurisdiction) without a corresponding inclusion for tax purposes of that payment or deemed payment in the payee jurisdiction.
- disregarded permanent establishment
means any arrangement that is treated as giving rise to a permanent establishment under the laws of the head office jurisdiction and is not treated as giving rise to a permanent establishment under the laws of the other jurisdiction.’;
- double deduction
means a deduction of the same payment, expenses or losses in the jurisdiction in which the payment has its source, the expenses are incurred or the losses are suffered (payer jurisdiction) and in another jurisdiction (investor jurisdiction).
- dual inclusion income
means any item of income that is included under the laws of both jurisdictions where the mismatch outcome has arisen;
- financial instrument
means any instrument to the extent that it gives rise to a financing or equity return that is taxed under the rules for taxing debt, equity or derivatives under the laws of either the payee or payer jurisdictions and includes a hybrid transfer;
- hybrid entity
means any entity or arrangement that is regarded as a taxable entity under the laws of one jurisdiction and whose income or expenditure is treated as income or expenditure of one or more other persons under the laws of another jurisdiction;
- hybrid mismatch
means a situation involving a taxpayer or, with respect to Article 9(3), an entity where: For the purposes of this point (9): For the purposes of this point (9) and Articles 9, 9a and 9b:
- hybrid transfer
means any arrangement to transfer a financial instrument where the underlying return on the transferred financial instrument is treated for tax purposes as derived simultaneously by more than one of the parties to that arrangement;
- inclusion
means the amount that is taken into account in the taxable income under the laws of the payee jurisdiction.
- mismatch outcome
means a double deduction or a deduction without inclusion;
- on-market hybrid transfer
means any hybrid transfer that is entered into by a financial trader in the ordinary course of business, and not as part of a structured arrangement;
- person
means an individual or entity;
- structured arrangement
means an arrangement involving a hybrid mismatch where the mismatch outcome is priced into the terms of the arrangement or an arrangement that has been designed to produce a hybrid mismatch outcome, unless the taxpayer or an associated enterprise could not reasonably have been expected to be aware of the hybrid mismatch and did not share in the value of the tax benefit resulting from the hybrid mismatch.’;
- tax relief
means a tax exemption, reduction in the tax rate or any tax credit or refund (other than a credit for taxes withheld at source);