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 832-535   Additional requirements for secondary response  

832-535(1)    
However, if there is a secondary response country in relation to the *deducting hybrid mismatch (see section 832-555 ), and that country is Australia, section 832-530 does not apply in relation to the *deducting hybrid mismatch unless:

(a) the secondary response is required (see subsection (2)); and

(b) subsection (3) or (4) applies.

When secondary response is required

832-535(2)    
For the purposes of paragraph (1)(a), the secondary response is required unless:

(a) a *liable entity in respect of the income or profits of the *deducting hybrid satisfies the residency test in subsection 832-555(9) in the primary response country; and

(b) in the primary response country, the mismatch is covered by *foreign hybrid mismatch rules that correspond to this Subdivision, or by a law that has substantially the same effect as foreign hybrid mismatch rules that correspond to this Subdivision.

Control group

832-535(3)    
This subsection applies if the following entities are in the same *Division 832 control group:

(a) the *deducting hybrid;

(b) if one or more entities other than the deducting hybrid is a *liable entity in respect of the income or profits of the deducting hybrid in a deducting country - each such liable entity.

Note:

For the meaning of Division 832 control group , see section 832-205 .

Structured arrangement

832-535(4)    
This subsection applies if the payment is made under a *structured arrangement.

Note 1:

For the meaning of structured arrangement , see section 832-210 .

Note 2:

If the deduction is a non-payment deduction, see also subsection 832-110(5) .