Income Tax Assessment Act 1997
This Subdivision neutralises a deducting hybrid mismatch if it involves a deduction in Australia.
A deduction/deduction mismatch is generally a deducting hybrid mismatch.
An entity is a deducting hybrid if a payment it makes is deductible for the purposes of the tax law of 2 countries.
However, unless the deducting hybrid is a dual resident, there are rules identifying which country is the primary response country. If Australia is not the primary response country, this Subdivision will not neutralise the deducting hybrid mismatch unless:
The neutralising amount for the deducting hybrid mismatch is reduced by dual inclusion income.
A deducting hybrid 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 .
|832-530||Deduction not allowable|
|832-535||Additional requirements for secondary response|
|832-540||When a deducting hybrid mismatch is an offshore hybrid mismatch|
|832-545||When an amount gives rise to a deducting hybrid mismatch|
|832-555||Identifying a secondary response country|
|832-565||Adjustment if deducting hybrid has dual inclusion income in a later year|