Income Tax Assessment Act 1997
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Hide history noteSECTION 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 .
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