Australian Treasury Consulting on Draft Legislation Clarifying the Operation of the Hybrid Mismatch Rules

The Australian Treasury has launched a public consultation on draft legislation to implement amendments clarifying the operation of the hybrid mismatch rules. This includes amendments to the rules to:

• clarify that the hybrid mismatch rules apply to MEC groups in the same way as they apply to consolidated groups;
• clarify that, for the purpose of applying the hybrid mismatch rules, foreign income tax does not include foreign municipal or State taxes;  
• clarify the application of th…