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INCOME TAX ASSESSMENT ACT 1997 - SECT 832.615

When a payment gives rise to an imported hybrid mismatch

             (1)  A payment gives rise to an imported hybrid mismatch if:

                     (a)  the payment gives rise to a * hybrid mismatch under section 832- 620; and

                     (b)  an item in the table in subsection (2) applies to the importing payment.

Note:          The amount of the imported hybrid mismatch is worked out under section 832-630.

Priority rules for importing payments

             (2)  If more than one item in the following table covers an * importing payment in relation to an * offshore hybrid mismatch, apply the first item that covers it. However, an item does not apply to an importing payment if:

                     (a)  an item higher in the table applies to one or more other importing payments in relation to the offshore hybrid mismatch; and

                     (b)  the offshore hybrid mismatch is, or will be, fully neutralised by the application of this Subdivision, and equivalent provisions of applicable * foreign hybrid mismatch rules, to those other importing payments.

 

Priority table for importing payments

Item

Topic

An * importing payment is covered if:

1

Structured arrangement

(a) the * importing payment is made under a * structured arrangement; and

(b) the payer of the importing payment, the offshore deducting entity mentioned in paragraph 832-625(1)(c), and each interposed entity (if applicable) are all * parties to the structured arrangement

2

Direct payment

(a) the * importing payment is made directly to the offshore deducting entity mentioned in paragraph 832-625(1)(c); and

(b) the payer of the importing payment and the offshore deducting entity are in the same * Division 832 control group

3

Indirect payment

(a) the * importing payment is made indirectly through one or more interposed entities to the offshore deducting entity mentioned in paragraph 832-625(1)(c); and

(b) the payer of the importing payment, the offshore deducting entity, and each interposed entity are in the same * Division 832 control group

Note 1:       For the meaning of structured arrangement , see section 832- 210.

Note 2:       For the meaning of Division 832 control group , see section 832- 205.



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