Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 24/38)
Character Range: 7438113–7440949

amount of the *hybrid mismatch from subsection 832‑310(2), reduced (but not below nil) by the amount of any *dual inclusion income that is available to be applied in working out the neutralising amount.

Australian deduction—inclusions must be in Australia and in the non‑including country
 (2) An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch to which section 832‑285 applies if:
 (a) the *hybrid payer is eligible to apply the amount (see subsection 832‑680(7)); and
 (b) the amount is *subject to Australian income tax for the purposes of subsection 832‑680(1) in the income year mentioned in subsection 832‑285(1); and
 (c) the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the non‑including country identified in subsection 832‑320(3).
Note: Section 832‑680 modifies the meanings of subject to Australian income tax and subject to foreign income tax for the purpose of working out dual inclusion income.

Australian non‑inclusion—inclusions must be in Australia and in the deducting country
 (3) An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch to which section 832‑290 applies if:
 (a) the *hybrid payer is eligible to apply the amount (see subsection 832‑680(7)); and
 (b) the amount is *subject to Australian income tax for the purposes of subsection 832‑680(1) in the inclusion year mentioned in subsection 832‑290(4); and
 (c) the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the deducting country mentioned in subsection 832‑320(2).

Offshore hybrid mismatch—inclusions must be in the deducting country and the non‑including country
 (4) An amount of *dual inclusion income is available to be applied to reduce the *neutralising amount for a *hybrid payer mismatch that is an *offshore hybrid mismatch if:
 (a) the *hybrid payer is eligible to apply the amount (see subsection 832‑680(7)); and
 (b) in the same *foreign tax period as the period in which the *foreign income tax deduction arose, the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the deducting country mentioned in subsection 832‑320(2); and
 (c) the amount is *subject to foreign income tax for the purposes of subsection 832‑680(1) in the non‑including country identified in subsection 832‑320(3).

832‑335  Adjustment if hybrid payer has dual inclusion income in a later year
 (1) There is an adjustment under this section for an entity in an income year (the adjustment year) if:
 (a) in an earlier income year, all or part of a deduction of the entity in respect of a payment that gave rise to a *hybrid payer mismatch was not allowable under section 832‑285; and
 (b) an amount