Supplementary Order Paper No 38

Clause 30(1): new section FH 15(1)

Replace the definition of structured arrangement (page 48, lines 6 to 13) with:

structured arrangement, for a person, means an arrangement to which the person or a member of the person’s control group is a party—

(a)

for which—

(i)

a transaction under or involving the arrangement has a price that assumes the existence of a hybrid mismatch:

(ii)

the facts or circumstances indicate that the arrangement is intended to rely on or produce a hybrid mismatch; and

(b)

under which the person, or a member of the person’s control group, can reasonably be expected to be aware of—

(i)

a tax benefit for the person that arises from the hybrid mismatch:

(ii)

the existence of the hybrid mismatch