(1)       For the purposes of this section-

 

‘hybrid interest’, in relation to any debt owed by a company in terms of an instrument, means-

 

  (a)     any interest where the amount of that interest is-

 

(i)      not determined with reference to a specified rate of interest; or

 

(ii)     not determined with reference to the time value of money; or

 

(b)     if the rate of interest has in terms of that instrument been raised by reason of an increase in the profits of the company, so much of the amount of interest as has been determined with reference to the raised rate of interest as exceeds the amount of interest that would have been determined with reference to the lowest rate of interest in terms of that instrument during the current year of assessment and the previous five years of assessment;