Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-C - Hybrid financial instrument mismatch  

Operative provisions

SECTION 832-225   Hybrid requirement - payments under transfers of certain financial instruments  

832-225(1)    
A *deduction/non-inclusion mismatch, or a part of such a mismatch, meets the hybrid requirement in this section if:

(a) the payment that gives rise to the mismatch is made under an *arrangement covered by subsection 832-215(2) ; and

(b) the mismatch, or the part of the mismatch, is attributable to differences in the treatment of the arrangement; and

(c) the exception in subsection (2) of this section does not apply.

Exception for deferrals not exceeding 3 years

832-225(2)    
This exception applies if:

(a) the difference in treatment mentioned in paragraph (1)(b) primarily relates to a deferral in the recognition of income or profits under the *arrangement; and

(b) the term of the arrangement is 3 years or less.