Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p12
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 12/35)
Character Range: 30349–32968

a third entity holds a total participation interest of 25% or more in each of the entities.
 (5) For the purposes of subsection (4), treat the *direct participation interest of an entity (the holding entity) in another entity (the test entity) as being the sum of the direct participation interests held by the holding entity and its *associates in the test entity.

Structured arrangement
 (6) This subsection applies if the payment is made under a *structured arrangement.

832‑205  Meaning of Division 832 control group
 (1) Two or more entities are in the same Division 832 control group if any of the following apply:
 (a) each of the entities is a member of a group of entities that are consolidated for accounting purposes as a single group;
 (b) one of the entities holds a *total participation interest of 50% or more in each of the other entities;
 (c) a third entity holds a total participation interest of 50% or more in each of the entities.
 (2) For the purposes of subsection (1), in determining a *direct participation interest of one entity in another entity, disregard paragraph 350(1)(b) of the Income Tax Assessment Act 1936 (rights of shareholders to vote or participate in certain decision‑making).

832‑210  Meaning of structured arrangement
 (1) 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.
 (2) 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.
 (3) 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.

832‑215  Hybrid mismatch
 (1) 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