Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 832.315

  (1)   The payment meets the hybrid requirement in this section if:

  (a)   the payment is made by a * hybrid payer; and

  (b)   subsection   (2) or (3) applies.

Payment would have been taxed in Australia

  (2)   This subsection applies if:

  (a)   the non - including country identified in subsection   832 - 320(3) is Australia; and

  (b)   either:

  (i)   the amount of the * deduction/non - inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was * subject to Australian income tax for an income year was instead worked out on the assumption in subsection   (4); or

  (ii)   on the assumption in subsection   (4), the payment would have given rise to a * hybrid financial instrument mismatch.

Payment would have been taxed in a foreign country

  (3)   This subsection applies if:

  (a)   the non - including country identified in subsection   832 - 320(3) is a foreign country; and

  (b)   either:

  (i)   the amount of the * deduction/non - inclusion mismatch exceeds the amount that would be the amount of that mismatch if the amount of the payment that was * subject to foreign income tax for a * foreign tax period was instead worked out on the assumption in subsection   (4); or

  (ii)   on the assumption in subsection   (4), the payment would have given rise to a * hybrid financial instrument mismatch.

Assumption--payer was an ungrouped entity

  (4)   For the purposes of subsections   (2) and (3), assume that the payment had instead been made:

  (a)   to the same recipient; but

  (b)   by an entity that was a * liable entity in the non - including country identified in subsection   832 - 320(3) only in respect of its own income or profits.

Note:   For the meaning of liable entity , see section   832 - 325.