Your shopping cart is empty

The hybrid mismatch rules: Impact on foreign investors


The hybrid mismatch legislation contained in the Treasury Laws Amendment (Tax Integrity and Other Measures No. 2) Bill 2018 received royal assent on 24 August 2018 and applies to income years starting on or after 1 January 2019. On 21 June 2018, the ATO released a draft practical compliance guideline (PCG 2018/D4) which considers the application of the general anti-avoidance rules contained in Pt IVA of the Income Tax Assessment Act 1936 (Cth) in relation to restructures that occur in order to comply with the hybrid mismatch rules. This article focuses on certain aspects of the application of the hybrid mismatch rules on inbound investments. The authors are of the view that foreign investors should consider the potential impact of the hybrid mismatch rules sooner rather than later. It is expected that the identification of potential hybrid mismatches may not be straightforward, particularly as there are some uncertainties regarding key concepts in the legislation and explanatory memorandum, and the knowledge required on the upstream structure and the relevant overseas tax laws.

Author profiles

Wendy Hartanti
Wendy is a Director with PricewaterhouseCoopers. - Current at 14 March 2018
Click here to expand/collapse more articles by Wendy Hartanti.
Victor Pak
Victor is a Director, PricewaterhouseCoopers. - Current at 08 November 2018
Hendrik Hilgenfeld
Hendrik is a Director PricewaterhouseCoopers. - Current at 08 November 2018


Copyright Statement
click to expand/collapse