Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_1:p11
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 11/35)
Character Range: 27840–30584

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 arrangement to which the entity is not a *party; and
 (b) subsection 832‑200(3) does not apply.

832‑195  When a hybrid financial instrument mismatch is an offshore hybrid mismatch
 (1) A *hybrid financial instrument 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 832‑185 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 amount of the *hybrid financial instrument mismatch.

832‑200  When a payment gives rise to a hybrid financial instrument mismatch
 (1) A payment gives rise to a hybrid financial instrument mismatch if:
 (a) the payment gives rise to a *hybrid mismatch under section 832‑215 or 832‑230; and
 (b) subsection (3) or (6) applies.
Note: As a result of ordering rules in later Subdivisions, a payment that gives rise to a hybrid financial instrument mismatch does not also give rise to a hybrid mismatch under a later Subdivision of this Division.
 (2) The deduction component of the *hybrid financial instrument mismatch is the *deduction component of the *deduction/non‑inclusion mismatch.
 (3) This subsection applies if the following entities are related for the purposes of subsection (4):
 (a) the entity that made the payment;
 (b) each entity that is a *liable entity in respect of the income or profits of the recipient of the payment.
Note: For the definition of liable entity, see section 832‑325.

Related persons
 (4) Two entities are related for the purposes of this subsection if any of the following apply:
 (a) the entities are in the same *Division 832 control group;
 (b) one of the entities holds a *total participation interest of 25% or more in the other entity;
 (c) a third entity holds a total participation interest of 25% or more in each of the entities.
 (5) For the purposes of subsection (4), treat the *direct participation interest of an entity (the holding entity) in another entity (the test