On 2 July 2021 the Minister for Finance, Paschal Donohoe TD,
launched a Feedback Statement on the Anti-Reverse Hybrid Rule.
The first part of the anti-hybrid rules was introduced in
Finance Act 2019, as required by the Anti-Tax Avoidance Directives
(ATAD) and ATAD2. This Feedback Statement considers the remaining
part of the rules, dealing with reverse hybrid mismatches dealt
with in Article 9a of the ATAD as inserted by ATAD2, which must be
implemented by 1 January 2022.
A reverse hybrid mismatch arises where an entity, referred to as
a reverse hybrid entity, is treated as tax transparent in the
territory in which it is established but is treated as a separate
taxable person by some, or all, of its investors resulting in some,
or all, of its income going untaxed. The ATAD defines a mismatch
outcome as a double deduction or a deduction without inclusion
whereby payments made between entities in two different territories
may be deducted by each of the entities in the
