Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 832 - Hybrid mismatch rules  

Subdivision 832-H - Imported hybrid mismatch  

Operative provisions

SECTION 832-630   Working out the amount of the imported hybrid mismatch  

832-630(1)  
The amount of the *imported hybrid mismatch is the lesser of:

(a) the importing deduction amount worked out under subsection (2) in relation to the deduction; and

(b) the amount worked out using the following formula:

Importing deduction	×	Remaining offshore hybrid mismatch
Total importing deductions of equal priority

where:

importing deduction means the amount of the importing deduction amount worked out under subsection (2) in relation to the deduction.

remaining offshore hybrid mismatch means:

(a) unless paragraph (b) applies - the amount of the *offshore hybrid mismatch; or

(b) if an item higher in the table in subsection 832-615(2) applies to one or more other *importing payments in relation to the offshore hybrid mismatch - the amount of the offshore hybrid mismatch that is not, or will not be, neutralised by the application of this Subdivision, and equivalent provisions of applicable *foreign hybrid mismatch rules, in relation to those other importing payments.

total importing deductions of equal priority means the amount worked out by:

(a) identifying each *importing payment in relation to the *offshore hybrid mismatch to which the same item in the table in subsection 832-615(2) applies; and

(b) working out under subsection (2) the importing deduction amount in relation to the deduction or *foreign income tax deduction to which each such importing payment gives rise; and

(c) summing the results from paragraph (b) for each such importing payment.

832-630(2)  
The amount (the importing deduction amount ) worked out under this subsection in relation to a deduction or *foreign income tax deduction is:

(a) if the *importing payment is made directly to the offshore deducting entity - the amount of the deduction or foreign income tax deduction; or

(b) if the importing payment is made indirectly through one or more interposed entities to the offshore deducting entity - the lesser of:

(i) the amount of the deduction or foreign income tax deduction; and

(ii) the smallest amount of any foreign income tax deduction to which a payment by an interposed entity gave rise.