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 832-320   Hybrid payer  

832-320(1)    
An entity (the test entity ) is a hybrid payer in relation to a payment it makes if:

(a) subsection (2) applies to the entity in relation to a country and the payment; and

(b) subsection (3) applies to the entity in relation to a different country and the payment.

Note:

The entity, the payments it makes, and its income or profits are generally identified disregarding tax provisions: see section 832-30 .

Deducting country - entity is not grouped with recipient

832-320(2)    
This subsection applies to a test entity in relation to a country (the deducting country ) and a payment the test entity makes if:

(a) the test entity, or another entity, is a *liable entity in the deducting country in respect of income or profits of the test entity (or a part of those income or profits); and

(b) that liable entity is not also a liable entity in the deducting country in respect of income or profits of the recipient of the payment.

Non-including country - entity is grouped with recipient

832-320(3)    
This subsection applies to a test entity in relation to a country (a non-including country ) and a payment the test entity makes if:

(a) the test entity, or another entity, is a *liable entity in the non-including country in respect of income or profits of the test entity (or a part of the income or profits); and

(b) that liable entity is also a liable entity in the non-including country in respect of income or profits of the recipient of the payment.