Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_3:p3
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/10)
Character Range: 95513–98399

mismatch rules, in relation to those other importing payments.
total importing deductions of equal priority means the amount worked out by:
 (a) identifying each *importing payment in relation to the *offshore hybrid mismatch to which the same item in the table in subsection 832‑615(2) applies; and
 (b) working out under subsection (2) the importing deduction amount in relation to the deduction or *foreign income tax deduction to which each such importing payment gives rise; and
 (c) summing the results from paragraph (b) for each such importing payment.
 (2) The amount (the importing deduction amount) worked out under this subsection in relation to a deduction or *foreign income tax deduction is:
 (a) if the *importing payment is made directly to the offshore deducting entity—the amount of the deduction or foreign income tax deduction; or
 (b) if the importing payment is made indirectly through one or more interposed entities to the offshore deducting entity—the lesser of:
 (i) the amount of the deduction or foreign income tax deduction; and
 (ii) the smallest amount of any foreign income tax deduction to which a payment by an interposed entity gave rise.

832‑635  Carry forward of residual offshore hybrid mismatches
 (1) Subsection (2) applies if:
 (a) a payment made in a particular *foreign tax period gave rise to an *offshore hybrid mismatch (the original mismatch); and
 (b) the original mismatch is only partly neutralised by the application of this Subdivision and equivalent provisions of applicable *foreign hybrid mismatch rules.
 (2) This Subdivision applies as if:
 (a) the offshore deducting entity had made a payment in the next *foreign tax period; and
 (b) the payment gave rise to an *offshore hybrid mismatch (the residual mismatch); and
 (c) the amount of the residual mismatch was the amount of the original mismatch that was not neutralised by the application of this Subdivision and equivalent provisions of applicable *foreign hybrid mismatch rules.

Subdivision 832‑I—Dual inclusion income

Guide to Subdivision 832‑I

832‑675  What this Subdivision is about

      Income that is taxed in 2 countries is dual inclusion income. It can be applied to reduce the neutralising amount for the hybrid payer mismatch and the deducting hybrid mismatch.
      This Subdivision modifies the concepts of "subject to Australian income tax" and "subject to foreign income tax" for the purposes of calculating dual inclusion income.
      It also identifies which entities are able to apply dual inclusion income.

Table of sections

Operative provisions
832‑680 Dual inclusion income, and when an entity is eligible to apply it

Operative provisions

832‑680  Dual inclusion income, and when an entity is eligible to apply it
 (1) An amount of income or profits is dual inclusion income if 2 or more of the following outcomes arise for the amount:
 (a)