Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-G - Deducting hybrid mismatch  

Operative provisions

SECTION 832-550  

832-550   Deducting hybrid  

An entity is a deducting hybrid in relation to a payment or other amount if:

(a) the payment or other amount gives rise to a *deduction/deduction mismatch; and

(b) the entity is:

(i) for a payment - the entity that makes the payment; or

(ii) for an amount that represents the decline in value of a depreciating asset (see paragraph 832-110(4)(a) ) - the entity that holds the asset; or

(iii) for an amount that represents a share in the net loss of a partnership or other transparent entity (see paragraph 832-110(4)(b) ) - an entity that has an interest in the partnership or other transparent entity; and

(c) the entity:

(i) is a *liable entity in one deducting country (but not both); or

(ii) satisfies the residency test in subsection 832-555(9) in both deducting countries, and is also a liable entity in both deducting countries; or

(iii) is a *member of a *consolidated group or a *MEC group.