Income Tax Assessment Act 1997
CHAPTER 4
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INTERNATIONAL ASPECTS OF INCOME TAX
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:
(a) unless paragraph (b) applies
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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
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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.
(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:
PART 4-5
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GENERAL
Division 832
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Hybrid mismatch rules
Subdivision 832-H
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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:
total importing deductions of equal priority means the amount worked out by:
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.
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