Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_3:p8
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 8/10)
Character Range: 107874–110793

payments.
 (5) Subsection (3) does not apply if it is reasonable to conclude that, assuming that the payment had been made directly to the ultimate parent entity:
 (a) the payment would:
 (i) be *subject to foreign income tax at a rate that is the same as, or less than, the foreign country rate; or
 (ii) not be subject to foreign income tax; and
 (b) the payment would not give rise to a *hybrid financial instrument mismatch, a *hybrid payer mismatch or a *reverse hybrid mismatch.
 (6) Subsection (3) does not apply if the payment gives rise to a *hybrid financial instrument mismatch, a *hybrid payer mismatch, a *reverse hybrid mismatch, a *branch hybrid mismatch, a *deducting hybrid mismatch or an *imported hybrid mismatch.

832‑730  Back to back arrangements, etc.
 (1) Subsection (2) applies if:
 (a) an entity (the original paying entity) makes a payment of a kind mentioned in subparagraph 832‑725(1)(d)(i) to another entity; and
 (b) the other entity, or a further entity, pays an amount of that kind to a foreign entity; and
 (c) the payments mentioned in paragraphs (a) and (b) are made under an arrangement involving back‑to‑back loans or an arrangement that is economically equivalent and intended to have a similar effect to back‑to‑back loans.
 (2) For the purposes of this Subdivision, treat the original paying entity as having made the payment mentioned in paragraph (1)(a) to the foreign entity mentioned in paragraph (1)(b).

832‑735  Determination may specify kinds of scheme and circumstances where no denial of deduction
 (1) Subsection 832‑725(3) does not apply if:
 (a) where a determination made for the purposes of paragraph (2)(a) specifies a kind of *scheme—the scheme mentioned in subsection 832‑725(1) is of that kind; or
 (b) where a determination made for the purposes of paragraph (2)(b) specifies a kind of circumstances in relation to a scheme—circumstances of that kind exist in relation to the scheme mentioned in subsection 832‑725(1).
 (2) For the purposes of subsection (1), the Minister may, by legislative instrument, make a determination that:
 (a) specifies kinds of *schemes; and
 (b) specifies kinds of circumstances in relation to schemes.

Subdivision 832‑K—Modifications for Division 230 (about taxation of financial arrangements)

Guide to Subdivision 832‑K

832‑775  What this Subdivision is about
      This Subdivision contains modifications applying to gains and losses from financial arrangements.

Table of sections

Operative provisions
832‑780 Section 832‑20 applies to Division 230 losses
832‑785 Adjusting Division 230 loss
832‑790 Modifications relating to Division 230 gains and losses

Operative provisions

832‑780  Section 832‑20 applies to Division 230 losses
  To avoid doubt, the reference in paragraph 832‑20(1)(a) to a loss includes:
 (a) a loss from a *Division 230 financial arrangement; and
 (b) an amount treated under section 832‑790 as a