Treasury Laws Amendment (2020 Measures No. 2) Act 2020 (79 of 2020)

Schedule 1   Hybrid mismatch rules

Part 1   Main amendments

Income Tax Assessment Act 1997

15   Subsection 832-325(1)

Repeal the subsection (not including the heading or notes), substitute:

(1) An entity is a liable entity , in a country, in respect of its income or profits if:

(a) for Australia:

(i) *tax is imposed on the entity in respect of all or part of its income or profits for an income year; or

(ii) the entity is a *public trading trust (including a trust that makes a choice under section 703-50 (Choice to consolidate a consolidatable group)); or

(iii) the entity is an entity to which Division 295 (about superannuation entities) applies; and

(b) for a foreign country - *foreign income tax (except a tax covered by subsection 832-130(7)) is imposed under the law of the foreign country:

(i) on the entity in respect of all or part of its income or profits for a *foreign tax period; or

(ii) on the income or profits of the entity in a way that corresponds to the way that foreign income tax is imposed under the law of that country on the income or profits of a company (regardless whether the foreign income tax is actually imposed on that entity, or another entity).