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 832-335   Adjustment if hybrid payer has dual inclusion income in a later year  

832-335(1)    
There is an adjustment under this section for an entity in an income year (the adjustment year ) if:

(a) in an earlier income year, all or part of a deduction of the entity in respect of a payment that gave rise to a *hybrid payer mismatch was not allowable under section 832-285 ; and

(b) an amount of *dual inclusion income is:

(i) available to be applied by the *hybrid payer in the adjustment year; and

(ii) *subject to Australian income tax for the purposes of subsection 832-680(1) in the adjustment year; and

(iii) *subject to foreign income tax for the purposes of subsection 832-680(1) in the non-including country identified in subsection 832-320(3) .

832-335(2)    
So much of the amount of *dual inclusion income that satisfies paragraph (1)(b) as does not exceed the amount that was not allowable as a deduction is an amount the entity can deduct in the adjustment year.

832-335(3)    
For the purposes of a later application of this section, treat the amount that was not allowable as a deduction under section 832-285 as being reduced by the amount deducted under subsection (2) of this section.