Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p7
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 7/35)
Character Range: 17753–20331

which an entity is entitled, if the entity is entitled to deduct the amount in working out its tax base for the foreign tax period under a law of the foreign country dealing with *foreign income tax (except *credit absorption tax, *unitary tax or a withholding‑type tax).
 (2) To avoid doubt, an amount of a loss or outgoing may be a foreign income tax deduction in a foreign country in a *foreign tax period even if the relevant entity's tax base is nil, or a negative amount.

Effect of foreign hybrid mismatch rules
 (3) In determining for the purposes of this section whether an entity is entitled to deduct an amount as mentioned in subsection (1), disregard the effect of the following:
 (a) any provisions of *foreign hybrid mismatch rules of a foreign country;
 (b) any provisions of another law of a foreign country relating to *foreign income tax (except *credit absorption tax, *unitary tax or a withholding‑type tax) that has substantially the same effect as foreign hybrid mismatch rules.

832‑125  Meaning of subject to Australian income tax
 (1) An amount of income or profits is subject to Australian income tax in an income year if it is an amount that is included in an entity's assessable income for the income year.
 (2) However, if:
 (a) the entity is a trust or partnership; and
 (b) the trust or partnership has net income for the income year;
then the amount is only subject to Australian income tax to the extent it reasonably represents amounts:
 (c) included in the assessable income of another entity for the income year (other than an entity that is a partnership or the trustee of a trust); or
 (d) for a trust—on which the trustee is liable to be assessed and to pay *tax.

Effect of CFC regimes
 (3) An amount of income or profits of an entity is subject to Australian income tax if the amount is included under section 456 or 457 of the Income Tax Assessment Act 1936 in the assessable income of another entity.
 (4) In determining for the purposes of this Division whether an amount of income or profits is *subject to Australian income tax, disregard the effect of this Division, unless the contrary intention appears.

832‑130  Meaning of subject to foreign income tax
 (1) An amount of income or profits is subject to foreign income tax in a foreign country in a *foreign tax period if *foreign income tax (except *credit absorption tax, *unitary tax or a withholding‑type tax) is payable under a law of the foreign country in respect of the amount because the amount is included in the tax base of that law for the foreign tax period.
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