Income Tax Assessment Act 1997



Division 832 - Hybrid mismatch rules  

Subdivision 832-C - Hybrid financial instrument mismatch  

Operative provisions

SECTION 832-215   Hybrid mismatch  

A payment gives rise to a hybrid mismatch if:

(a) the payment is made under any of the following:

(i) a *debt interest;

(ii) an *equity interest;

(iii) a *derivative financial arrangement;

(iv) an *arrangement covered by subsection (2); and

(b) the payment might reasonably be expected to give rise to a *deduction/non-inclusion mismatch; and

(c) the mismatch that might reasonably be expected to arise, or a part of that mismatch, meets a hybrid requirement in section 832-220 or 832-225 . Transfers of financial instruments

An *arrangement is covered by this subsection if:

(a) the arrangement is any of the following:

(i) a reciprocal purchase agreement (otherwise known as a repurchase agreement);

(ii) a securities lending arrangement;

(iii) a similar arrangement; and

(b) an entity acquires any of the following under the arrangement:

(i) a *debt interest;

(ii) an *equity interest;

(iii) a *derivative financial arrangement.
Amount of the hybrid mismatch

The amount of the *hybrid mismatch is:

(a) the amount of the *deduction/non-inclusion mismatch, unless paragraph (b) applies; or

(b) if only a part of the deduction/non-inclusion mismatch meets a hybrid requirement mentioned in paragraph (1)(c) - the amount of that part of the deduction/non-inclusion mismatch.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.