Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-B - Concepts relating to mismatches  

Operative provisions

SECTION 832-120   Meaning of foreign income tax deduction  

832-120(1)    

An amount of a loss or outgoing is a foreign income tax deduction in a foreign country in a *foreign tax period to which an entity is entitled, if the entity is entitled to deduct the amount in working out its tax base for the foreign tax period under a law of the foreign country dealing with *foreign income tax (except a tax covered by subsection 832-130(7) ).

832-120(2)    
To avoid doubt, an amount of a loss or outgoing may be a foreign income tax deduction in a foreign country in a *foreign tax period even if the relevant entity ' s tax base is nil, or a negative amount.

Effect of foreign hybrid mismatch rules

832-120(3)    
In determining for the purposes of this section whether an entity is entitled to deduct an amount as mentioned in subsection (1), disregard the effect of the following:

(a) any provisions of *foreign hybrid mismatch rules of a foreign country;

(b) any provisions of another law of a foreign country relating to *foreign income tax (except a tax covered by subsection 832-130(7) ) that has substantially the same effect as foreign hybrid mismatch rules.