Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p13
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 13/38)
Character Range: 7410909–7413697

which the *foreign income tax deduction arose, the mismatch is 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.

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 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) 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 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