Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-B - Concepts relating to mismatches  

Operative provisions

SECTION 832-125   Meaning of subject to Australian income tax  

832-125(1)    
An amount of income or profits is subject to Australian income tax in an income year if it is an amount that is included in an entity ' s assessable income for the income year.

832-125(2)    
However, if:

(a) the entity is a trust or partnership; and

(b) the trust or partnership has *net income for the income year;

then the amount is only subject to Australian income tax to the extent it reasonably represents amounts:

(c) included in the assessable income of another entity for the income year (other than an entity that is a partnership or a trust); or

(d) for a trust - on which the trustee is liable to be assessed and to pay *tax.

Effect of CFC regimes

832-125(3)    
An amount of income or profits of an entity is subject to Australian income tax if the amount is included under section 456 or 457 of the Income Tax Assessment Act 1936 in the assessable income of another entity.

832-125(4)    
In determining for the purposes of this Division whether an amount of income or profits is *subject to Australian income tax, disregard the effect of this Division, unless the contrary intention appears.