Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p21
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 21/35)
Character Range: 52654–55495

test entity are:
 (a) included under section 456 or 457 of the Income Tax Assessment Act 1936 in the assessable income of the other entity; or
 (b) included under a corresponding provision of a law of a foreign country in working out the tax base of the other entity (including a tax base of nil, or a negative amount).

832‑330  Neutralising amount
 (1) The neutralising amount for a *hybrid payer mismatch is the amount of the *hybrid mismatch from subsection 832‑310(2), reduced (but not below nil) by the amount of any *dual inclusion income that is available to be applied in working out the neutralising amount.

Australian deduction—inclusions must be in Australia and in the non‑including country
 (2) An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch to which section 832‑285 applies if:
 (a) the *hybrid payer is eligible to apply the amount (see subsection 832‑680(7)); and
 (b) the amount is *subject to Australian income tax for the purposes of subsection 832‑680(1) in the income year mentioned in subsection 832‑285(1); and
 (c) the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the non‑including country identified in subsection 832‑320(3).
Note: Section 832‑680 modifies the meanings of subject to Australian income tax and subject to foreign income tax for the purpose of working out dual inclusion income.

Australian non‑inclusion—inclusions must be in Australia and in the deducting country
 (3) An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch to which section 832‑290 applies if:
 (a) the *hybrid payer is eligible to apply the amount (see subsection 832‑680(7)); and
 (b) the amount is *subject to Australian income tax for the purposes of subsection 832‑680(1) in the inclusion year mentioned in subsection 832‑290(4); and
 (c) the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the deducting country mentioned in subsection 832‑320(2).

Offshore hybrid mismatch—inclusions must be in the deducting country and the non‑including country
 (4) An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch that is an *offshore hybrid mismatch if:
 (a) the *hybrid payer is eligible to apply the amount (see subsection 832‑680(7)); and
 (b) in the same *foreign tax period as the period in which the *foreign income tax deduction arose, the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the deducting country mentioned in subsection 832‑320(2); and
 (c) the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the non‑including country identified