(b) an amount representing a share in the net loss of a partnership, trust or other transparent entity. (5) For the purposes of subsection (4), a reference in this Division to the under which a payment is made is taken to be a *scheme reference to: (a) if paragraph (4)(a) applies—the scheme under which the asset is held; or (b) if paragraph (4)(b) applies—the scheme under which the net loss arose. 832110 Disregard effect of Division in determining deductions In determining for the purposes of this Division whether a payment gives rise to a deduction, disregard the effect of this Division. 832115 Meaning of foreign income tax deduction (1) An amount of a loss or outgoing incurred by an entity is a foreign in a foreign country in a tax period income tax deduction *foreign if the entity is entitled to deduct the amount in working out its tax base for the foreign tax period under a law of the foreign country dealing with income tax (except absorption tax, *foreign *credit tax or a withholdingtype tax). *unitary (2) To avoid doubt, an amount of a loss or outgoing may be a foreign in a foreign country in a tax period income tax deduction *foreign even if the relevant tax base is nil, or a negative amount. entity’s Effect of foreign hybrid mismatch rules (3) In determining for the purposes of this section whether an entity is entitled to deduct an amount as mentioned in subsection (1), disregard the effect of the following: (a) any provisions of hybrid mismatch rules of a foreign *foreign country; (b) any provisions of another law of a foreign country relating to income tax (except absorption tax, *foreign *credit *unitary tax or a withholdingtype tax) that has substantially the same effect as foreign hybrid mismatch rules.
(b) an amount representing a share in the net loss of a partnership, trust or other transparent entity. (5) For the purposes of subsection (4), a reference in this Division to the *scheme under which a payment is made is taken to be a reference to: (a) if paragraph (4)(a) applies—the scheme under which the asset is held; or (b) if paragraph (4)(b) applies—the scheme under which the net loss arose. 832110 Disregard effect of Division in determining deductions In determining for the purposes of this Division whether a payment gives rise to a deduction, disregard the effect of this Division. 832115 Meaning of foreign income tax deduction (1) An amount of a loss or outgoing incurred by an entity is a foreign income tax deduction in a foreign country in a *foreign tax period if the entity is entitled to deduct the amount in working out its tax base for the foreign tax period under a law of the foreign country dealing with *foreign income tax (except *credit absorption tax, *unitary tax or a withholdingtype tax). (2) To avoid doubt, an amount of a loss or outgoing may be a foreign income tax deduction in a foreign country in a *foreign tax period even if the relevant entity’s tax base is nil, or a negative amount. Effect of foreign hybrid mismatch rules (3) In determining for the purposes of this section whether an entity is entitled to deduct an amount as mentioned in subsection (1), disregard the effect of the following: (a) any provisions of *foreign hybrid mismatch rules of a foreign country; (b) any provisions of another law of a foreign country relating to *foreign income tax (except *credit absorption tax, *unitary tax or a withholdingtype tax) that has substantially the same effect as foreign hybrid mismatch rules.
Exposure-Draft-c2018-t268551-1.docx