Document ID: chunk:federal_register_of_legislation:C2018A00084:clause:1_3:p2
Version: federal_register_of_legislation:C2018A00084
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 2/10)
Character Range: 92997–95768

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 next payment, or is made after the previous payment; and
 (b) each payment made by an interposed entity must:
 (i) give rise to a *foreign income tax deduction in a country that does not have *foreign hybrid mismatch rules; and
 (ii) not give rise to a *deduction/non‑inclusion mismatch.

Loss surrender and grouping relief
 (4) Subsection (5) applies if:
 (a) a payment is made to an entity (the first entity); and
 (b) another entity (the second entity) makes a payment (the second payment) to a third entity; and
 (c) the first entity and the second entity are in the same *Division 832 control group; and
 (d) under the law of a foreign country relating to *foreign income tax (except *credit absorption tax, *unitary tax or a withholding‑type tax):
 (i) a *foreign income tax deduction arises in respect of the second payment; and
 (ii) the foreign income tax deduction may, as a result of a concessional feature of that law, be transferred to, shared with, or otherwise applied by, the first entity.
Note: For the meaning of Division 832 control group, see section 832‑205.
 (5) For the purposes of this section, treat:
 (a) a payment as having been made by the first entity to the second entity; and
 (b) the payment as having given rise to a *foreign income tax deduction (but not a *deduction/non‑inclusion mismatch) in the foreign country mentioned in paragraph (4)(d).

832‑630  Working out the amount of the imported hybrid mismatch
 (1) The amount of the *imported hybrid mismatch is the lesser of:
 (a) the importing deduction amount worked out under subsection (2) in relation to the deduction; and
 (b) the amount worked out using the following formula:
where:
importing deduction means the amount of the importing deduction amount worked out under subsection (2) in relation to the deduction.
remaining offshore hybrid mismatch means:
 (a) unless paragraph (b) applies—the amount of the *offshore hybrid mismatch; or
 (b) if an item higher in the table in subsection 832‑615(2) applies to one or more other *importing payments in relation to the offshore hybrid mismatch—the amount of the offshore hybrid mismatch that is not, or will not be, neutralised by the application of this Subdivision, and equivalent provisions of applicable *foreign hybrid mismatch rules, in relation to those other importing payments.
total importing deductions of equal priority means the amount worked out by:
 (a) identifying each *importing payment in relation to the *offshore hybrid mismatch to which the same item in the