Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 832.550

    An entity is a deducting hybrid in relation to a payment or other amount if:

  (a)   the payment or other amount gives rise to a * deduction/deduction mismatch; and

  (b)   the entity is:

  (i)   for a payment--the entity that makes the payment; or

  (ii)   for an amount that represents the decline in value of a depreciating asset (see paragraph   832 - 110(4)(a))--the entity that holds the asset; or

  (iii)   for an amount that represents a share in the net loss of a partnership or other transparent entity (see paragraph   832 - 110(4)(b))--an entity that has an interest in the partnership or other transparent entity; and

  (c)   the entity:

  (i)   is a * liable entity in one deducting country (but not both); or

  (ii)   satisfies the residency test in subsection   832 - 555(9) in both deducting countries, and is also a liable entity in both deducting countries; or

  (iii)   is a * member of a * consolidated group or a * MEC group.