Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p10
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 10/35)
Character Range: 25110–28075

might give rise to an imported hybrid mismatch under Subdivision 832‑H.

Table of sections

Operative provisions
832‑180 Deduction not allowable—Australian primary response
832‑185 Inclusion in assessable income—Australian secondary response
832‑190 Exception where entity not a party to the structured arrangement
832‑195 When a hybrid financial instrument mismatch is an offshore hybrid mismatch
832‑200 When a payment gives rise to a hybrid financial instrument mismatch
832‑205 Meaning of Division 832 control group
832‑210 Meaning of structured arrangement
832‑215 Hybrid mismatch
832‑220 Hybrid requirement—payments under financial instruments
832‑225 Hybrid requirement—payments under transfers of certain financial instruments
832‑230 Hybrid mismatch—integrity rule for substitute payments
832‑235 Extended operation of this Subdivision in relation to concessional foreign taxes
832‑240 Adjustment if hybrid financial instrument payment is income in a later year

Operative provisions

832‑180  Deduction not allowable—Australian primary response
 (1) This section applies to an entity if:
 (a) apart from this section, the entity would be entitled to a deduction in an income year in respect of a payment; and
 (b) the deduction is the *deduction component of a *hybrid financial instrument mismatch to which the payment gives rise.
 (2) So much of the deduction as does not exceed the amount of the *hybrid financial instrument mismatch is not allowable as a deduction.

832‑185  Inclusion in assessable income—Australian secondary response
 (1) This section applies to an entity if:
 (a) the entity is the recipient of a payment that gives rise to a *hybrid financial instrument mismatch; and
 (b) the *deduction component of the mismatch is a *foreign income tax deduction; and
 (c) the secondary response is required (see subsection (2)).
 (2) For the purposes of paragraph (1)(c), the secondary response is required unless the *foreign income tax deduction is in a foreign country that has *foreign hybrid mismatch rules, or another law that has substantially the same effect as foreign hybrid mismatch rules.

Inclusion of amount in assessable income
 (3) An amount equal to the amount of the *hybrid financial instrument mismatch is included in the entity's assessable income for the income year mentioned in subsection (4). The assessable income is taken to have been derived from the same source as the payment.
 (4) The income year is:
 (a) if the *foreign tax period in which the *foreign income tax deduction arises falls wholly within an income year of the entity—that income year; or
 (b) if the foreign tax period in which the foreign income tax deduction arises straddles 2 income years of the entity—the earlier of those income years.

832‑190  Exception where entity not a party to the structured arrangement
  Sections 832‑180 and 832‑185 do not apply to an entity in respect of a payment if:
 (a) the payment is made under a *structured