Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-D - Hybrid payer mismatch  

Operative provisions

SECTION 832-330   Neutralising amount  

832-330(1)    
The neutralising amount for a *hybrid payer mismatch is the amount of the *hybrid mismatch from subsection 832-310(2) , reduced (but not below nil) by the amount of any *dual inclusion income that is available to be applied in working out the neutralising amount.

Australian deduction - inclusions must be in Australia and in the non-including country

832-330(2)    
An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch to which section 832-285 applies if:

(a) the *hybrid payer is eligible to apply the amount (see subsection 832-680(7) ); and

(b) the amount is *subject to Australian income tax for the purposes of subsection 832-680(1) in the income year mentioned in subsection 832-285(1) ; and

(c) the amount is *subject to foreign income tax for the purposes of subsection 832-680(1) in the non-including country identified in subsection 832-320(3) .

Note:

Section 832-680 modifies the meanings of subject to Australian income tax and subject to foreign income tax for the purpose of working out dual inclusion income.

Australian non-inclusion - inclusions must be in Australia and in the deducting country

832-330(3)    
An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch to which section 832-290 applies if:

(a) the *hybrid payer is eligible to apply the amount (see subsection 832-680(7) ); and

(b) the amount is *subject to Australian income tax for the purposes of subsection 832-680(1) in the inclusion year mentioned in subsection 832-290(4) ; and

(c) the amount is *subject to foreign income tax for the purposes of subsection 832-680(1) in the deducting country mentioned in subsection 832-320(2) .

Offshore hybrid mismatch - inclusions must be in the deducting country and the non-including country

832-330(4)    
An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch that is an *offshore hybrid mismatch if:

(a) the *hybrid payer is eligible to apply the amount (see subsection 832-680(7) ); and

(b) in the same *foreign tax period as the period in which the *foreign income tax deduction arose, the amount is *subject to foreign income tax for the purposes of subsection 832-680(1) in the deducting country mentioned in subsection 832-320(2) ; and

(c) the amount is *subject to foreign income tax for the purposes of subsection 832-680(1) in the non-including country identified in subsection 832-320(3) .