Income Tax Assessment Act 1997



Division 832 - Hybrid mismatch rules  

Subdivision 832-D - Hybrid payer mismatch  

Guide to Subdivision 832-D

SECTION 832-280   What this Subdivision is about  

This Subdivision neutralises a hybrid payer mismatch if it involves a deduction, or non-inclusion, in Australia.

A deduction/non-inclusion mismatch is a hybrid payer mismatch if it is made by a hybrid payer, and the mismatch would not have arisen, or would have been less, if the payment had instead been made by an ungrouped entity. It is also a requirement that the relevant parties are in the same control group or the mismatch arose under a structured arrangement.

An entity is a hybrid payer if a payment it makes is disregarded for the purposes of the tax law of one country (resulting in non-inclusion), but is deductible for the purposes of the tax law of another country.

The neutralising amount for the hybrid payer mismatch is reduced by dual inclusion income.

A hybrid payer mismatch that is not neutralised by this Subdivision (or by foreign hybrid mismatch rules) is an offshore hybrid mismatch, which might give rise to an imported hybrid mismatch under Subdivision 832-H .

Operative provisions
832-285 Deduction not allowable - Australian primary response
832-290 Inclusion in assessable income - Australian secondary response
832-295 Exception where entity not a party to the structured arrangement
832-300 When a hybrid payer mismatch is an offshore hybrid mismatch
832-305 When a payment gives rise to a hybrid payer mismatch
832-310 Hybrid mismatch
832-315 Hybrid requirement - assume payment was made to same recipient but by an ungrouped payer
832-320 Hybrid payer
832-325 Meaning of liable entity
832-330 Neutralising amount
832-335 Adjustment if hybrid payer has dual inclusion income in a later year

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