Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 832-480 Hybrid requirement - payment made directly or indirectly to a branch hybrid 832-480(1)
The payment meets the hybrid requirement in this section if:
(a) the payment is made directly, or indirectly through one or more interposed entities, to a *branch hybrid; and
(b) subsection (2) or (3) applies.
Payment would have been taxed in Australia
832-480(2)
This subsection applies if:
(a) the residence country identified in subsection 832-485(2) is Australia; and
(b) either:
(i) the amount of the *deduction/non-inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was *subject to Australian income tax for an income year was instead worked out on the assumption in subsection (4); or
(ii) on the assumption in subsection (4), the payment would have given rise to a *hybrid financial instrument mismatch or a *hybrid payer mismatch.
Payment would have been taxed in a foreign country
832-480(3)
This subsection applies if:
(a) the residence country identified in subsection 832-485(2) is a foreign country; and
(b) either:
(i) the amount of the *deduction/non-inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was *subject to foreign income tax for a *foreign tax period was instead worked out on the assumption in subsection (4); or
(ii) on the assumption in subsection (4), the payment would have given rise to a *hybrid financial instrument mismatch or a *hybrid payer mismatch.
Assumption - residence country treated payment as non-branch income
832-480(4)
For the purposes of subsections (2) and (3), assume that the payment was instead treated as income derived by the *liable entity but not in carrying on a business at or through a *PE in another country for the purposes of:
(a) if the residence country is Australia - this Act; or
(b) if the residence country is a foreign country - the law of the residence country relating to *foreign income tax (except a tax covered by subsection 832-130(7) ).
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
