Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to an entity if:
(a) apart from this section, the entity would be entitled to a deduction in an income year in respect of a payment; and
(b) the deduction is the * deduction component of a * branch hybrid mismatch to which the payment gives rise.
(2) So much of the deduction as does not exceed the amount of the * branch hybrid mismatch is not allowable as a deduction.
(3) However, this section does not apply in relation to the * branch hybrid mismatch if subsection 23AH(2) of the Income Tax Assessment Act 1936 does not apply in relation to the payment because of subsection (4A) of that section.