Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 832.560

  (1)   The neutralising amount for a * deducting hybrid mismatch is worked out by:

  (a)   starting with the lesser of the amounts of each deduction or * foreign income tax deduction to which the amount gives rise; and

  (b)   reducing (but not below nil) the result from paragraph   (a) by the amount of any * dual inclusion income that is available to be applied in working out the neutralising amount.

Australian deduction--inclusions must be in Australia and in the other deducting country

  (2)   An amount of * dual inclusion income is available to be applied to reduce the * neutralising amount for a * deducting hybrid mismatch to which section   832 - 530 applies if:

  (a)   the * deducting hybrid is eligible to apply the amount (see subsection   832 - 680(7)); and

  (b)   the amount is * subject to Australian income tax for the purposes of subsection   832 - 680(1) in the income year mentioned in subsection   832 - 530(1); and

  (c)   the amount is * subject to foreign income tax for the purposes of subsection   832 - 680(1) in the foreign country in which the * foreign income tax deduction arose.

Note:   Section   832 - 680 modifies the meanings of subject to Australian income tax and subject to foreign income tax for the purpose of working out dual inclusion income.

Offshore hybrid mismatch--inclusions must be in the deducting countries

  (3)   An amount of * dual inclusion income is available to be applied to reduce the * neutralising amount for a * deducting hybrid mismatch that is an * offshore hybrid mismatch if:

  (a)   the * deducting hybrid is eligible to apply the amount (see subsection   832 - 680(7)); and

  (b)   the amount is * subject to foreign income tax for the purposes of subsection   832 - 680(1) in the foreign country in which one of the * foreign income tax deductions arose, and in the same * foreign tax period; and

  (c)   the amount is also subject to foreign income tax for the purposes of subsection   832 - 680(1) in the foreign country in which another of the foreign income tax deductions arose.