Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) An amount of a loss or outgoing is a foreign income tax deduction in a foreign country in a * foreign tax period to which an entity is entitled, if the entity is entitled to deduct the amount in working out its tax base for the foreign tax period under a law of the foreign country dealing with * foreign income tax (except a tax covered by subsection 832 - 130(7)).
(2) To avoid doubt, an amount of a loss or outgoing may be a foreign income tax deduction in a foreign country in a * foreign tax period even if the relevant entity's tax base is nil, or a negative amount.
Effect of foreign hybrid mismatch rules
(3) In determining for the purposes of this section whether an entity is entitled to deduct an amount as mentioned in subsection (1), disregard the effect of the following:
(a) any provisions of * foreign hybrid mismatch rules of a foreign country;
(b) any provisions of another law of a foreign country relating to * foreign income tax (except a tax covered by subsection 832 - 130(7)) that has substantially the same effect as foreign hybrid mismatch rules.