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 832-315   Hybrid requirement - assume payment was made to same recipient but by an ungrouped payer  

832-315(1)    
The payment meets the hybrid requirement in this section if:

(a) the payment is made by a *hybrid payer; and

(b) subsection (2) or (3) applies.

Payment would have been taxed in Australia

832-315(2)    
This subsection applies if:

(a) the non-including country identified in subsection 832-320(3) is Australia; and

(b) either:

(i) the amount of the *deduction/non-inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was *subject to Australian income tax for an income year was instead worked out on the assumption in subsection (4); or

(ii) on the assumption in subsection (4), the payment would have given rise to a *hybrid financial instrument mismatch.

Payment would have been taxed in a foreign country

832-315(3)    
This subsection applies if:

(a) the non-including country identified in subsection 832-320(3) is a foreign country; and

(b) either:

(i) the amount of the *deduction/non-inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was *subject to foreign income tax for a *foreign tax period was instead worked out on the assumption in subsection (4); or

(ii) on the assumption in subsection (4), the payment would have given rise to a *hybrid financial instrument mismatch.

Assumption - payer was an ungrouped entity

832-315(4)    
For the purposes of subsections (2) and (3), assume that the payment had instead been made:

(a) to the same recipient; but

(b) by an entity that was a *liable entity in the non-including country identified in subsection 832-320(3) only in respect of its own income or profits.

Note:

For the meaning of liable entity , see section 832-325 .