Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 3/38)
Character Range: 7386049–7388720

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 non‑cash benefits
832‑20 Losses that arise from payments or parts of payments
832‑25 Recipients and payers of a payment
832‑30 How this Division applies to entities
832‑35 Single entity rule otherwise not disregarded
832‑40 Schemes outside Australia
832‑45 Relationship between this Division and other charging provisions in this Act
832‑50 Relationship between this Division and Division 820
832‑55 Division does not affect foreign residence rules
832‑60 Valuation of trading stock affected by hybrid mismatch rules

Operative provisions

832‑10  Entitlement to receive payment
  This Division applies as if an entity (the payer) had made a payment to another entity (the recipient) if the recipient is entitled to receive the payment from the payer, even if the payment is not required to be made until a later time.

832‑15  Entitlement to receive non‑cash benefits
  This Division applies as if an entity (the payer) had made a payment to another entity (the recipient) if the recipient received a *non‑cash benefit from the payer.

832‑20  Losses that arise from payments or parts of payments
 (1) This section applies if:
 (a) a loss gives rise to:
 (i) a deduction for an entity (the payer) for an income year; or
 (ii) a *foreign income tax deduction for an entity (also the payer) for a *foreign tax period; and
 (b) in working out the amount of the loss:
 (i) all or a part of a payment made, or to be made, to one or more other entities is taken into account; or
 (ii) 2 or more payments made, or to be made, to one or more other entities are taken into account.
Note: This section also applies to losses from Division 230 financial arrangements: see section 832‑780.

Payments made to only one entity
 (2) If, in working out the amount of the loss, a payment or payments made to only one entity (the recipient) are taken into account, this Division applies as if:
 (a) at the end of the income year or *foreign tax period identified in paragraph (1)(a), the payer made a payment to the recipient; and
 (b) the amount of the payment was equal to the amount of the deduction or *foreign income tax deduction; and
 (c) the payment gave rise to the deduction or foreign income tax deduction.

Payments made to 2 or more entities
 (3) If, in working out the amount of the loss, a payment or payments made to 2 or more entities (each of which is a recipient) are taken into