Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-J - Integrity rule  

Operative provisions

SECTION 832-730   Back to back arrangements, etc.  

832-730(1)    
Subsection (2) applies if:

(a) an entity (the original paying entity ) makes a payment of a kind mentioned in subparagraph 832-725(1)(d)(i) to another entity; and

(b) the other entity, or a further entity, pays an amount of that kind to a foreign entity; and

(c) the payments mentioned in paragraphs (a) and (b) are made under an arrangement involving back-to-back loans or an arrangement that is economically equivalent and intended to have a similar effect to back-to-back loans.

832-730(2)    
For the purposes of this Subdivision, treat the original paying entity as having made the payment mentioned in paragraph (1)(a) to the foreign entity mentioned in paragraph (1)(b).