Show download pdf controls
  • Disclosure requirements in Question 49 of the international dealings schedule

    We have become aware of a level of non-compliance in relation to international dealings schedule (IDS) Question 49 reporting requirements in Section G – Hybrid mismatches.

    Some businesses are failing to disclose the:

    • required detail of the restructure steps
    • relevant entity names
    • jurisdiction of the parties to the replacement arrangement.

    Section G: Hybrid mismatches is an important disclosure requirement. It is designed to mandate disclosure of each step of any arrangements that have effectively replaced previous arrangements, which would have been subject to the hybrid mismatch rules had they not been unwound, restructured or replaced.

    The instructions require:

    • a description of each of the steps of the restructured or replacement arrangement, including connected steps of members of the reporting entity’s global group
    • a description of the replaced hybrid mismatch arrangement including the nature of the hybrid mismatch and how the tax laws of the relevant counterparty jurisdiction operated to produce the mismatch.

    We include examples in the instructions that illustrate how the disclosure should include the name and residence of a party to any step of the replacement arrangement.

    We will be following up disclosures at Question 49 of the IDS that do not meet the level of disclosure required.

    What you should do

    If you have already lodged your 2019 or 2020 international dealings schedule and your disclosures at Section G do not meet the level of disclosure required by the instructions, we recommend that you:

    • amend your IDS
    • contact us at as soon as possible, or if you have a dedicated key relationship manager, contact them directly in relation to your circumstances.

    See also:

    Last modified: 10 Sep 2020QC 63631