Implementing the OECD Hybrid Mismatch Rules

This consultation process has now been completed. Submissions available
Consultation Type
Exposure Draft

Key Documents

The Government announced in the 2016-17 and 2017-18 Budgets that it would implement the Organisation for Economic Co operation and Development’s (OECD) rules aimed at eliminating double non-taxation benefits from hybrid mismatch arrangements which exploit differences in the tax treatment of an entity or instrument under the laws of two or more tax jurisdictions.

On the 24 November 2017 the Government released exposure draft legislation and explanatory memorandum for public consultation.

On the same date the Treasurer announced that the Government would adopt the OECD’s recommendations to address branch mismatch arrangements and would develop a targeted integrity rule to address arrangements used to circumvent the hybrid mismatch rules.

The Government is seeking the community’s views on revised exposure draft legislation that incorporates the previously released exposure draft legislation as well as rules to address branch mismatch arrangements and to introduce the announced integrity rule.

The revised draft legislation will apply broadly to related parties, members of a control group and structured arrangements and is designed to neutralise any hybrid double non-taxation benefits by either denying deductions or including amounts in assessable income.


8 submissions were received for this consultation.

Deloitte - pdf 163.08 KB
EY - pdf 372.96 KB
PwC - pdf 1.09 MB
Tax Institute - pdf 337.39 KB
Tax Justice Network - pdf 224.23 KB