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 832-290   Inclusion in assessable income - Australian secondary response  

832-290(1)    
This section applies to an entity if:

(a) the entity is the recipient of a payment that gives rise to a *hybrid payer mismatch; and

(b) the *deduction component of the mismatch is a *foreign income tax deduction; and

(c) the secondary response is required (see subsection (2)).

When secondary response is required

832-290(2)    

For the purposes of paragraph (1)(c), the secondary response is required unless, in the country in which the *foreign income tax deduction arose, the mismatch is covered by *foreign hybrid mismatch rules that correspond to this Subdivision, or by a law that has substantially the same effect as foreign hybrid mismatch rules that correspond to this Subdivision.

Inclusion of amount in assessable income

832-290(3)    
An amount equal to the *neutralising amount for the *hybrid payer mismatch is included in the entity ' s assessable income for the income year mentioned in subsection (4). The assessable income is taken to have been derived from the same source as the payment.

832-290(4)    
The income year (the inclusion year ) is:

(a) if the *foreign tax period in which the *foreign income tax deduction arises falls wholly within an income year of the entity - that income year; or

(b) if the foreign tax period in which the foreign income tax deduction arises straddles 2 income years of the entity - the earlier of those income years.