188ÌåÓý

Condition D of s259HA asks whether it is reasonable to suppose that, if certain chapters of Part 6A (or equivalent non-UK legislation) did not apply, there would be a multinational payee deduction/non-inclusion mismatch in relation to the payment or quasi-payment.

The test is whether a relevant deduction/non-inclusion mismatch would arise if Chapters 8 to 10 of Part 6A (or any equivalent non-UK legislation) did not apply.

There is no definition of the term ‘reasonable to suppose� in Part 6A, so the phrase will take its ordinary meaning. Generally, this does not require either party to know how the transaction has been treated by the counterparty: it requires only that, given the facts and circumstances, it is reasonable to conclude that a mismatch would arise in these circumstances.

See INTM556080 for the requirements for a deduction/non-inclusion mismatch to be a multinational payee deduction/non-inclusion mismatch.