Income Tax Assessment Act 1997
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Hide history noteSECTION 832-560 Neutralising amount 832-560(1)
The neutralising amount for a *deducting hybrid mismatch is worked out by:
(a) starting with the lesser of the amounts of each deduction or *foreign income tax deduction to which the amount gives rise; and
(b) reducing (but not below nil) the result from paragraph (a) by the amount of any *dual inclusion income that is available to be applied in working out the neutralising amount.
Australian deduction - inclusions must be in Australia and in the other deducting country
832-560(2)
An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *deducting hybrid mismatch to which section 832-530 applies if:
(a) the *deducting hybrid is eligible to apply the amount (see subsection 832-680(7) ); and
(b) the amount is *subject to Australian income tax for the purposes of subsection 832-680(1) in the income year mentioned in subsection 832-530(1) ; and
(c) the amount is *subject to foreign income tax for the purposes of subsection 832-680(1) in the foreign country in which the *foreign income tax deduction arose.
Note:
Section 832-680 modifies the meanings of subject to Australian income tax and subject to foreign income tax for the purpose of working out dual inclusion income.
Offshore hybrid mismatch - inclusions must be in the deducting countries
832-560(3)
An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *deducting hybrid mismatch that is an *offshore hybrid mismatch if:
(a) the *deducting hybrid is eligible to apply the amount (see subsection 832-680(7) ); and
(b) the amount is *subject to foreign income tax for the purposes of subsection 832-680(1) in the foreign country in which one of the *foreign income tax deductions arose, and in the same *foreign tax period; and
(c) the amount is also subject to foreign income tax for the purposes of subsection 832-680(1) in the foreign country in which another of the foreign income tax deductions arose.
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