Taxation (International and Other Provisions) Act 2010 section 259ZMF

Meaning of "dual inclusion income" and "counteraction amount"

Section 259ZMF defines two key terms — "dual inclusion income" and "counteraction amount" — used in the chapter dealing with the interaction between hybrid mismatch rules and surplus dual inclusion income.

• Dual inclusion income is income of a company for an accounting period that qualifies as dual inclusion income under any provision of Part 6A of the Act, meaning it is recognised for tax purposes in more than one jurisdiction.
• Where the same income qualifies as dual inclusion income under more than one provision, it is only counted once — there is no double counting.
• The counteraction amount is the total of all hybrid mismatch adjustments that have been applied to the company for the accounting period, drawn from a defined list of counteraction provisions across several chapters of Part 6A.
• The specific counteraction amounts that feed into this total include restricted deductions for hybrid payer mismatches, relevant amounts for payee adjustments, excessive permanent establishment deductions, hybrid entity double deduction amounts, dual territory double deduction amounts (reduced by any impermissible overseas deduction), and imported mismatch amounts relating to dual territory double deductions or excessive PE deductions.

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