Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_3:p1
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 1/10)
Character Range: 90412–93244

3                                      Indirect payment        (a) the *importing payment is made indirectly through one or more interposed entities to the offshore deducting entity mentioned in paragraph 832‑625(1)(c); and
                                                               (b) the payer of the importing payment, the offshore deducting entity, and each interposed entity are in the same *Division 832 control group

Note 1: For the meaning of structured arrangement, see section 832‑210.
Note 2: For the meaning of Division 832 control group, see section 832‑205.

832‑620  Hybrid mismatch
 (1) A payment gives rise to a hybrid mismatch if the payment is an *importing payment in relation to an *offshore hybrid mismatch.
Note: For the meaning of offshore hybrid mismatch see sections 832‑195, 832‑300, 832‑390, 832‑465, and 832‑540.

Ordering rule
 (2) A payment does not give rise to a hybrid mismatch under this section if it gives rise to a *hybrid financial instrument mismatch, a *hybrid payer mismatch, a *reverse hybrid mismatch, a *branch hybrid mismatch or a *deducting hybrid mismatch.
Note: However, for an imported hybrid mismatch to arise, a different payment must have given rise to an offshore hybrid mismatch that is of one of these kinds.

832‑625  Meaning of importing payment
 (1) A payment an entity (the payer) makes is an importing payment in relation to an *offshore hybrid mismatch if:
 (a) either:
 (i) apart from section 832‑610, the payment, or a part of the payment, gives rise to a deduction in an income year covered by subsection (2); or
 (ii) the payment, or a part of the payment, gives rise to a *foreign income tax deduction in a foreign country that has *foreign hybrid mismatch rules, in a *foreign tax period covered by subsection (2); and
 (b) the payment is made directly, or indirectly through one or more interposed entities, to another entity; and
 (c) the other entity (the offshore deducting entity) is:
 (i) the entity that made the payment that gave rise to the offshore hybrid mismatch; or
 (ii) if the offshore hybrid mismatch is a *deducting hybrid mismatch—the *deducting hybrid.

Period within which mismatch may be imported
 (2) For the purposes of paragraph (1)(a), a *foreign tax period or income year is covered by this subsection if:
 (a) it ends at or after the end of the foreign tax period in which a *deduction component of the *offshore hybrid mismatch arose; and
 (b) it has at least one day in common with that period.

Indirect importations
 (3) For the purposes of determining whether a payment is made indirectly through one or more interposed entities to the offshore deducting entity:
 (a) it is sufficient if payments exist between each interposed entity, and it is not necessary to demonstrate that each payment in a series of payments funds the