Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 230.522

Adjusting a gain or loss that gives rise to a hybrid mismatch

  (1)   This section applies if a provision of Division   832 would, apart from section   832 - 785, apply to make not allowable an amount (the relevant amount ) that is all or a part of the deduction for:

  (a)   a loss from a * Division   230 financial arrangement; or

  (b)   an amount treated under section   832 - 790 as a separate loss from a Division   230 financial arrangement.

  (2)   The following have effect:

  (a)   if (disregarding section   832 - 790) you made a loss from the * financial arrangement, and the relevant amount does not exceed the amount of the loss--the amount of the loss you made is reduced by the relevant amount;

  (b)   if (disregarding section   832 - 790) you made a loss from the financial arrangement, and the relevant amount exceeds the amount of the loss:

  (i)   you do not make a loss from the financial arrangement; and

  (ii)   instead, you make a gain from the financial arrangement equal to the amount of the excess;

  (c)   if (disregarding section   832 - 790) you made a gain from the financial arrangement--the amount of the gain is increased by the relevant amount.

  (3)   The effect of subsection   (2) is to be disregarded for the purposes of paragraph   (c) of step 1 and paragraph   (c) of step 2 of subsection   230 - 445(1) (about balancing adjustments).


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