Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 832.215

  (1)   A payment gives rise to a hybrid mismatch if:

  (a)   the payment is made under any of the following:

  (i)   a * debt interest;

  (ii)   an * equity interest;

  (iii)   a * derivative financial arrangement;

  (iv)   an * arrangement covered by subsection   (2); and

  (b)   the payment might reasonably be expected to give rise to a * deduction/non - inclusion mismatch; and

  (c)   the mismatch that might reasonably be expected to arise, or a part of that mismatch, meets a hybrid requirement in section   832 - 220 or 832 - 225.

Transfers of financial instruments

  (2)   An * arrangement is covered by this subsection if:

  (a)   the arrangement is any of the following:

  (i)   a reciprocal purchase agreement (otherwise known as a repurchase agreement);

  (ii)   a securities lending arrangement;

  (iii)   a similar arrangement; and

  (b)   an entity acquires any of the following under the arrangement:

  (i)   a * debt interest;

  (ii)   an * equity interest;

  (iii)   a * derivative financial arrangement.

Amount of the hybrid mismatch

  (3)   The amount of the * hybrid mismatch is:

  (a)   the amount of the * deduction/non - inclusion mismatch, unless paragraph   (b) applies; or

  (b)   if only a part of the deduction/non - inclusion mismatch meets a hybrid requirement mentioned in paragraph   (1)(c)--the amount of that part of the deduction/non - inclusion mismatch.