Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

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PART 4-5 - GENERAL  

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Division 832 - Hybrid mismatch rules  

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Subdivision 832-H - Imported hybrid mismatch  

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Operative provisions

SECTION 832-630   Working out the amount of the imported hybrid mismatch  

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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:

  • (a) unless paragraph (b) applies - 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 - 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.

    • total importing deductions of equal priority means the amount worked out by:

  • (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:


    (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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