Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 832-410 Reverse hybrid 832-410(1)
An entity (the test entity ) is a reverse hybrid in relation to a payment made to it if:
(a) subsection (2) applies to the entity in relation to a country and the payment; and
(b) subsection (3) applies to the entity in relation to a different country and the payment.
Note:
The entity, the payments it makes, and its income or profits are generally identified disregarding tax provisions: see section 832-30 .
Formation country - entity is transparent and payment is not within the tax base
832-410(2)
This subsection applies to a test entity in relation to a country (the formation country ) and a payment made to the entity if:
(a) the test entity is formed in the formation country; and
(b) for the formation country, the test entity is:
(i) not a *liable entity; and
(ii) for Australia - not a *member of a *consolidated group or *MEC group; and
(c) for the formation country, another entity (an investor ) is a liable entity in respect of income or profits of the test entity.
Note:
For the meaning of liable entity , see section 832-325 .
Investor country - entity is not transparent
832-410(3)
This subsection applies to a test entity in relation to a country (the investor country ) and a payment made to the entity if, in the investor country:
(a) an investor identified in paragraph (2)(c) is a *liable entity (an investing taxpayer ) in respect of its own income or profits, but not in respect of the test entity ' s income or profits; or
(b) an entity that is a liable entity (also an investing taxpayer ) in respect of the investor ' s income or profits is not also a liable entity in respect of the test entity ' s income or profits.
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.
