Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 5/38)
Character Range: 7390846–7393509

all jurisdictions. (Note that in some countries, a "payment" recognised by this subsection will not have a tax consequence because the payment is disregarded for tax purposes).
Note 2: As a consequence of paragraph (1)(a), a subsidiary member of a consolidated group or MEC group may be a hybrid payer under section 832‑320 or a deducting hybrid under section 832‑550 (it cannot be a reverse hybrid because of subparagraph 832‑410(2)(b)(ii)).
 (2) In addition, in the case of a trust or partnership, the trust or partnership, instead of a trustee or partner, is taken, for the purposes of this Division, to do the following things:
 (a) make or receive a payment;
 (b) hold, acquire or dispose of an asset, interest or other property;
 (c) enter into or carry out a *scheme or a part of a scheme.

Identifying income or profits of entities
 (3) A number of provisions in this Division refer to the income or profits of an entity. For the purposes of this Division, things recognised in accordance with subsection (1) or (2) as being done by an entity are to be taken into account in identifying the income or profits of the entity.

Assessable income and deductions
 (4) A reference in this Division to an amount being included in the assessable income of an entity, or being allowable, or not allowable, as a deduction to an entity, is taken to be a reference to an amount that is so included, or allowable or not allowable, as the case requires, in determining:
 (a) in the case of an entity that is a trust—the entity's *net income; or
 (b) in the case of a partnership—the partnership's net income or *partnership loss.

This section does not affect the interpretation of other provisions
 (5) Nothing in this section affects whether *tax or *foreign income tax is imposed on an entity.
 (6) Nothing in this section limits, by implication, any other provision of this Act.

832‑35  Single entity rule otherwise not disregarded
  Subject to section 832‑30, subsection 701‑1(1) (the single entity rule) is not disregarded in applying this Division.

832‑40  Schemes outside Australia
  This Division applies in relation to a payment whether or not the *scheme under which the payment is made has been or is entered into or carried out in Australia or outside Australia or partly in Australia and partly outside Australia.

832‑45  Relationship between this Division and other charging provisions in this Act
 (1) This section applies if an amount is included in the assessable income of an entity under a provision of this Division in relation to a payment.
 (2) An amount in relation to the payment that is to be included in the assessable income of the entity