Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p23
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 23/35)
Character Range: 57768–60608

primary response
832‑385 Exception where entity not a party to the structured arrangement
832‑390 When a reverse hybrid mismatch is an offshore hybrid mismatch
832‑395 When a payment gives rise to a reverse hybrid mismatch
832‑400 Hybrid mismatch
832‑405 Hybrid requirement—assume payment was made to an investor
832‑410 Reverse hybrid

Operative provisions

832‑380  Deduction not allowable—Australian primary response
 (1) This section applies to an entity if:
 (a) apart from this section, the entity would be entitled to a deduction in an income year in respect of a payment; and
 (b) the deduction is the *deduction component of a *reverse hybrid mismatch to which the payment gives rise.
 (2) So much of the deduction as does not exceed the amount of the *reverse hybrid mismatch is not allowable as a deduction.

832‑385  Exception where entity not a party to the structured arrangement
  Section 832‑380 does not apply to an entity in respect of a payment if:
 (a) the payment is made under a *structured arrangement to which the entity is not a *party; and
 (b) subsection 832‑395(3) does not apply.

832‑390  When a reverse hybrid mismatch is an offshore hybrid mismatch
 (1) A *reverse hybrid mismatch is an offshore hybrid mismatch if:
 (a) the *deduction component of the mismatch is a *foreign income tax deduction; and
 (b) the country in which the foreign income tax deduction arose does not have *foreign hybrid mismatch rules.
Note: An offshore hybrid mismatch might give rise to an imported hybrid mismatch: see Subdivision 832‑H.
 (2) The amount of the *offshore hybrid mismatch is the amount of the *reverse hybrid mismatch.

832‑395  When a payment gives rise to a reverse hybrid mismatch
 (1) A payment gives rise to a reverse hybrid mismatch if:
 (a) the payment gives rise to a *hybrid mismatch under section 832‑400; and
 (b) subsection (3) or (4) applies.
 (2) The deduction component of the *reverse hybrid mismatch is the *deduction component of the *deduction/non‑inclusion mismatch mentioned in section 832‑400.

Control group
 (3) This subsection applies if the following entities are in the same *Division 832 control group:
 (a) the entity that made the payment;
 (b) the *reverse hybrid;
 (c) each entity that is an investor identified in paragraph 832‑410(2)(c) in relation to the reverse hybrid.
Note: For the meaning of Division 832 control group, see section 832‑205.

Structured arrangement
 (4) This subsection applies if the payment is made under a *structured arrangement.
Note: For the meaning of structured arrangement, see section 832‑210.

832‑400  Hybrid mismatch
 (1) A payment gives rise to a hybrid mismatch if:
 (a) the payment gives rise to a *deduction/non‑inclusion mismatch; and
 (b) the payment meets the hybrid requirement in section 832‑405.

Amount of the hybrid mismatch
 (2) The