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INCOME TAX ASSESSMENT ACT 1997 - SECT 832.280

What this Subdivision is about

This Subdivision neutralises a hybrid payer mismatch if it involves a deduction, or non - inclusion, in Australia.

A deduction/non - inclusion mismatch is a hybrid payer mismatch if it is made by a hybrid payer, and the mismatch would not have arisen, or would have been less, if the payment had instead been made by an ungrouped entity. It is also a requirement that the relevant parties are in the same control group or the mismatch arose under a structured arrangement.

An entity is a hybrid payer if a payment it makes is disregarded for the purposes of the tax law of one country (resulting in non - inclusion), but is deductible for the purposes of the tax law of another country.

The neutralising amount for the hybrid payer mismatch is reduced by dual inclusion income.

A hybrid payer mismatch that is not neutralised by this Subdivision (or by foreign hybrid mismatch rules) is an offshore hybrid mismatch, which might give rise to an imported hybrid mismatch under Subdivision   832 - H.

Table of sections

Operative provisions

832 - 285   Deduction not allowable--Australian primary response

832 - 290   Inclusion in assessable income--Australian secondary response

832 - 295   Exception where entity not a party to the structured arrangement

832 - 300   When a hybrid payer mismatch is an offshore hybrid mismatch

832 - 305   When a payment gives rise to a hybrid payer mismatch

832 - 310   Hybrid mismatch

832 - 315   Hybrid requirement--assume payment was made to same recipient but by an ungrouped payer

832 - 320   Hybrid payer

832 - 325   Meaning of liable entity

832 - 330   Neutralising amount

832 - 335   Adjustment if hybrid payer has dual inclusion income in a later year


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