Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-C - Hybrid financial instrument mismatch  

Operative provisions

SECTION 832-240   Adjustment if hybrid financial instrument payment is income in a later year  

832-240(1)    
There is an adjustment under this section for an entity in an income year (the adjustment year ) if:

(a) an amount was not allowable as a deduction for the entity in an earlier income year under section 832-180 in respect of a payment that gave rise to a *hybrid financial instrument mismatch; and

(b) an amount (the taxed amount ) of the payment is:

(i) *subject to foreign income tax in a foreign country in a *foreign tax period that ends within 12 months after the end of the adjustment year; or

(ii) *subject to Australian income tax in the adjustment year.

832-240(2)    
The taxed amount is an amount the entity can deduct in the adjustment year.

832-240(2A)    

Subsection (2) does not apply if, on the assumption that subsections 832-180(2) and 832-725(6) were disregarded, no amount would have been allowable as a deduction in respect of the payment because of subsection 832-725(3) .

832-240(3)    
The total amounts deducted under this section in respect of a payment must not exceed the amount that was not allowable as a deduction in respect of the payment as mentioned in paragraph (1)(a).

No adjustment for concessional taxes

832-240(4)    
This section does not apply if the *hybrid mismatch would not have arisen apart from section 832-235 .