What the ATO's view on the hybrid mismatch rules means for US groups

An expansive interpretation of the hybrid payer rules means a significantly greater number of Australian deductible payments will be within scope, and by extension, are at risk of being disallowed as deductions in Australia under the draft determination, as detailed by Alia Lum, Peter Oliver, Fabian Fedele and Tammy Eccles.

The Draft Taxation Determination 2024/D1 – Income tax: hybrid mismatch rules – application of certain aspects of the ‘liable entity’ and ‘hybrid payer’ definitions (Draft TD) outlines an expansive interpretation of two concepts underlying the "hybrid payer mismatch" provisions, with United States (US) multinationals likely to be significantly impacted. The potential impact of the views expressed in the Draft TD is that a greater number of payments could be within scope of the hybrid payer ru...

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Authors: Alia Lum, Peter Oliver,

Published Date: 20 March 2024