Taxes Consolidation Act 1997 section 835AR

Application of Chapter 8

Section 835AR sets out the entities and transactions to which the imported mismatch rule in Chapter 8 of Part 35C applies.

• The chapter applies to a company within the charge to Irish tax where a mismatch outcome arises through a transaction or series of transactions between associated enterprises, a head office and its permanent establishment, or two or more permanent establishments of an entity.
• The Irish company must make a payment to a payee established outside the EU for the rule to apply.
• The rule targets scenarios where an ordinary (non-hybrid) payment by an Irish company directly or indirectly funds an offshore hybrid mismatch that has not been neutralised elsewhere.
• Intra-EU payments are outside scope on the basis that ATAD requires all Member States to have primary or defensive anti-hybrid rules in place.