(1) An entity (the test entity ) is a hybrid payer in relation to a payment it makes if:
(a) subsection (2) applies to the entity in relation to a country and the payment; and
(b) subsection (3) applies to the entity in relation to a different country and the payment.
Note: The entity, the payments it makes, and its income or profits are generally identified disregarding tax provisions: see section 832 - 30.
Deducting country--entity is not grouped with recipient
(2) This subsection applies to a test entity in relation to a country (the deducting country ) and a payment the test entity makes if:
(a) the test entity, or another entity, is a * liable entity in the deducting country in respect of income or profits of the test entity (or a part of those income or profits); and
(b) that liable entity is not also a liable entity in the deducting country in respect of income or profits of the recipient of the payment.
Non - including country--entity is grouped with recipient
(3) This subsection applies to a test entity in relation to a country (a non - including country ) and a payment the test entity makes if:
(a) the test entity, or another entity, is a * liable entity in the non - including country in respect of income or profits of the test entity (or a part of the income or profits); and
(b) that liable entity is also a liable entity in the non -
including country in respect of income or profits of the recipient of the
payment.