Income Tax Assessment Act 1997



Division 832 - Hybrid mismatch rules  

Subdivision 832-C - Hybrid financial instrument mismatch  

Operative provisions

SECTION 832-210   Meaning of structured arrangement  

A payment that gives rise to a *hybrid mismatch is made under a structured arrangement if:

(a) the hybrid mismatch is priced into the terms of a *scheme under which the payment is made; or

(b) it is reasonable to conclude that the hybrid mismatch is a design feature of a scheme under which the payment is made.

The question whether a *hybrid mismatch is a design feature of a *scheme must be determined by reference to the facts and circumstances that exist in connection with the scheme, including the terms of the scheme.

An entity that entered into or carried out the *scheme or any part of the scheme is a party to the *structured arrangement unless:

(a) the entity could not reasonably have been expected to be aware that the scheme gave rise to a *hybrid mismatch; and

(b) no other entity in the same *Division 832 control group as the entity could reasonably have been expected to be aware that the scheme gave rise to a hybrid mismatch; and

(c) the financial position of each entity in the Division 832 control group would reasonably be expected to have been the same if the scheme had not given rise to the hybrid mismatch.


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