Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p20
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 20/38)
Character Range: 7428534–7431366

to the mismatch; and
 (c) the mismatch is not covered by *foreign hybrid mismatch rules that correspond to this Subdivision, or by a law that has substantially the same effect as foreign hybrid mismatch rules that correspond to this Subdivision.
Note: An offshore hybrid mismatch might give rise to an imported hybrid mismatch: see Subdivision 832‑H.
 (2) The amount of the *offshore hybrid mismatch is the *neutralising amount for the *hybrid payer mismatch.

832‑305  When a payment gives rise to a hybrid payer mismatch
 (1) A payment gives rise to a hybrid payer mismatch if:
 (a) the payment gives rise to a *hybrid mismatch under section 832‑310; and
 (b) subsection (3) or (4) applies.
 (2) The deduction component of the *hybrid payer mismatch is the *deduction component of the *deduction/non‑inclusion mismatch mentioned in section 832‑310.

Control group
 (3) This subsection applies if the following entities are in the same *Division 832 control group:
 (a) the *hybrid payer;
 (b) each entity that is a *liable entity in respect of the income or profits of the hybrid payer.
Note: For the meaning of Division 832 control group, see section 832‑205.

Structured arrangement
 (4) This subsection applies if the payment is made under a *structured arrangement.
Note: For the meaning of structured arrangement, see section 832‑210.

832‑310  Hybrid mismatch
 (1) A payment gives rise to a hybrid mismatch if:
 (a) the payment gives rise to a *deduction/non‑inclusion mismatch; and
 (b) the payment meets the hybrid requirement in section 832‑315.

Amount of the hybrid mismatch
 (2) The amount of the *hybrid mismatch is the lesser of:
 (a) the amount of the *deduction/non‑inclusion mismatch; and
 (b) if there is an excess under either subparagraph 832‑315(2)(b)(i) or 832‑315(3)(b)(i)—the amount of the excess.

Ordering rule
 (3) However, a payment does not give rise to a hybrid mismatch under this section if it gives rise to a *hybrid financial instrument mismatch.

832‑315  Hybrid requirement—assume payment was made to same recipient but by an ungrouped payer
 (1) The payment meets the hybrid requirement in this section if:
 (a) the payment is made by a *hybrid payer; and
 (b) subsection (2) or (3) applies.

Payment would have been taxed in Australia
 (2) This subsection applies if:
 (a) the non‑including country identified in subsection 832‑320(3) is Australia; and
 (b) either:
 (i) the amount of the *deduction/non‑inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was *subject to Australian income tax for an income year was instead worked out on the assumption in subsection (4); or
 (ii) on the assumption in subsection (4), the payment would have given rise to a *hybrid financial instrument mismatch.

Payment would have been taxed in