Show download pdf controls
  • Draft LCR: OECD hybrid mismatch rules – targeted integrity rule open for consultation

    We have published draft Law Companion Ruling LCR 2019/D1 OECD hybrid mismatch rules – targeted integrity rule.

    This LCR has been developed to provide guidance to taxpayers regarding the Commissioner’s interpretation of the hybrid mismatch targeted integrity rule in subdivision 832-J of the Income Tax Assessment Act 1997 (ITAA 1997), legislated as part of the package of measures making up Australia’s hybrid mismatch rules including Division 832.

    The hybrid mismatch integrity rule seeks to prevent offshore multinationals from effectively replicating a hybrid mismatch outcome by routing financing into Australia through an interposed entity in a no - or low-tax (that is, 10% or less) jurisdiction. When applicable, this rule will deny the borrower’s entitlement to a deduction for the cost of funding owed to the interposed foreign entity.

    We are committed to working with our stakeholders to ensure the integrity of the Australian tax system. As part of this process, we invite your comments on this draft guidance. The consultation period is open until 10 May 2019. You can submit your feedback via email at

    See more:

    For more general information about hybrid mismatch rules, visit Hybrid mismatch rules.

    Last modified: 10 Apr 2019QC 58534