Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-G - Deducting hybrid mismatch  

Operative provisions

SECTION 832-565   Adjustment if deducting hybrid has dual inclusion income in a later year  

832-565(1)  
There is an adjustment under this section for an entity in an income year (the adjustment year ) if:


(a) in an earlier income year, all or part of a deduction of the entity in respect of an amount that gave rise to a *deducting hybrid mismatch was not allowable under section 832-530 ; and


(b) an amount of *dual inclusion income is:


(i) available to be applied by the *deducting hybrid in the adjustment year; and

(ii) *subject to Australian income tax for the purposes of subsection 832-680(1) in the adjustment year; and

(iii) *subject to foreign income tax for the purposes of subsection 832-680(1) in the foreign country in which the *foreign income tax deduction arose.

832-565(2)  
So much of the amount of *dual inclusion income that satisfies paragraph (1)(b) as does not exceed the amount that was not allowable as a deduction is an amount the entity can deduct in the adjustment year.

832-565(2A)  


Subsection (2) does not apply if:


(a) the amount that was not allowable as a deduction under section 832-530 relates to a payment; and


(b) on the assumption that subsection 832-530(2) were disregarded, no amount would have been allowable as a deduction in respect of the payment because of subsection 832-725(3) .

832-565(3)  
For the purposes of a later application of this section, treat the amount that was not allowable as a deduction under section 832-530 as being reduced by the amount deducted under subsection (2) of this section.


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