Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) There is an adjustment under this section for an entity in an income year (the adjustment year ) if:
(a) an amount was not allowable as a deduction for the entity in an earlier income year under section 832 - 180 in respect of a payment that gave rise to a * hybrid financial instrument mismatch; and
(b) an amount (the taxed amount ) of the payment is:
(i) * subject to foreign income tax in a foreign country in a * foreign tax period that ends within 12 months after the end of the adjustment year; or
(ii) * subject to Australian income tax in the adjustment year.
(2) The taxed amount is an amount the entity can deduct in the adjustment year.
(2A) Subsection (2) does not apply if, on the assumption that subsections 832 - 180(2) and 832 - 725(6) were disregarded, no amount would have been allowable as a deduction in respect of the payment because of subsection 832 - 725(3).
(3) The total amounts deducted under this section in respect of a payment must not exceed the amount that was not allowable as a deduction in respect of the payment as mentioned in paragraph (1)(a).
No adjustment for concessional taxes
(4) This section does not apply if the * hybrid mismatch would
not have arisen apart from section 832 - 235.