Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 2/38)
Character Range: 7383552–7386340

at the end of the taxpayer's preceding income year.

830‑125  How long interest in asset, or asset, held

Partner's interest in asset when entity becomes a foreign hybrid
 (1) If an entity becomes a *foreign hybrid company in relation to an income year, the interest that a partner has in an asset as mentioned in section 830‑35 is taken to have been held by the partner (except for the purposes of having the *tax cost of the interest set) from the later of the following times:
 (a) when the entity *acquired the asset;
 (b) when the partner acquired its *shares in the entity.

Entity's asset when it ceases to be a foreign hybrid company
 (2) If:
 (a) an entity is not a *foreign hybrid company in relation to an income year (the post‑hybrid year); and
 (b) the entity was a *foreign hybrid company in relation to the preceding income year; and
 (c) during:
 (i) that preceding income year; or
 (ii) any earlier income year in relation to which the entity was also a foreign hybrid;
  but not at the start of the first income year in relation to which the entity was a foreign hybrid company, the partners in the foreign hybrid company *acquired an interest in an asset that is an asset of the entity at the start of the post‑hybrid year;
the asset is taken to have been held by the entity (except for the purposes of having the *tax cost of the asset set) from the time the partners acquired their interests in the asset.

Division 832—Hybrid mismatch rules

Table of Subdivisions
 Guide to Division 832
832‑A Preliminary
832‑B Concepts relating to mismatches
832‑C Hybrid financial instrument mismatch
832‑D Hybrid payer mismatch
832‑E Reverse hybrid mismatch
832‑F Branch hybrid mismatch
832‑G Deducting hybrid mismatch
832‑H Imported hybrid mismatch
832‑I Dual inclusion income
832‑J Integrity rule
832‑K Modifications for Division 230 (about taxation of financial arrangements)

Guide to Division 832

832‑1  What this Division is about

      A "hybrid mismatch" arises if double non‑taxation results from the exploitation of differences in the tax treatment of an entity or financial instrument under the laws of 2 or more countries.
      There is double non‑taxation if a deductible payment is not included in a tax base (this is called a deduction/non‑inclusion mismatch), or if a payment gives rise to 2 deductions (this is called a deduction/deduction mismatch). Disallowing a deduction, or including an amount in assessable income, "neutralises" this tax advantage.

Subdivision 832‑A—Preliminary

Guide to Subdivision 832‑A

832‑5  What this Subdivision is about
      This Subdivision sets out some general rules that apply to the provisions of this Division.

Table of sections

Operative provisions
832‑10 Entitlement to receive payment
832‑15 Entitlement to receive