Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 830.125

Partner's interest in asset when entity becomes a foreign hybrid

  (1)   If an entity becomes a * foreign hybrid company in relation to an income year, the interest that a partner has in an asset as mentioned in section   830 - 35 is taken to have been held by the partner (except for the purposes of having the * tax cost of the interest set) from the later of the following times:

  (a)   when the entity * acquired the asset;

  (b)   when the partner acquired its * shares in the entity.

Entity's asset when it ceases to be a foreign hybrid company

  (2)   If:

  (a)   an entity is not a * foreign hybrid company in relation to an income year (the post - hybrid year ); and

  (b)   the entity was a * foreign hybrid company in relation to the preceding income year; and

  (c)   during:

  (i)   that preceding income year; or

  (ii)   any earlier income year in relation to which the entity was also a foreign hybrid;

    but not at the start of the first income year in relation to which the entity was a foreign hybrid company, the partners in the foreign hybrid company * acquired an interest in an asset that is an asset of the entity at the start of the post - hybrid year;

the asset is taken to have been held by the entity (except for the purposes of having the * tax cost of the asset set) from the time the partners acquired their interests in the asset.

Table of Subdivisions

  Guide to Division   832

832 - A   Preliminary

832 - B   Concepts relating to mismatches

832 - C   Hybrid financial instrument mismatch

832 - D   Hybrid payer mismatch

832 - E   Reverse hybrid mismatch

832 - F   Branch hybrid mismatch

832 - G   Deducting hybrid mismatch

832 - H   Imported hybrid mismatch

832 - I   Dual inclusion income

832 - J   Integrity rule

832 - K   Modifications for Division   230 (about taxation of financial arrangements)