Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p17
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 17/35)
Character Range: 43004–45758

the *neutralising amount for the *hybrid payer 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 (the inclusion 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.

832‑295  Exception where entity not a party to the structured arrangement
  Sections 832‑285 and 832‑290 do not apply to an entity in respect of a payment if:
 (a) the payment is made under a *structured arrangement to which the entity is not a *party; and
 (b) subsection 832‑305(3) does not apply.

832‑300  When a hybrid payer mismatch is an offshore hybrid mismatch
 (1) A *hybrid payer mismatch is an offshore hybrid mismatch if:
 (a) the *deduction component of the mismatch is a *foreign income tax deduction; and
 (b) no amount becomes *subject to Australian income tax as a result of the application of section 832‑290 in relation to the mismatch; and
 (c) none of the following countries has *foreign hybrid mismatch rules, or another law that has substantially the same effect as foreign hybrid mismatch rules:
 (i) the country in which the *foreign income tax deduction arose;
 (ii) any country in which income or profits of the recipient of the payment are *subject to foreign income tax.
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