ATO Issues Taxation Determination that U.S. GILTI Not Considered a CFC Rule for the Purpose of Hybrid Mismatch Subject to Tax Rules

The Australian Taxation Office (ATO) has issued Taxation Determination (TD) 2022/9, ruling that section 951A of the U.S. Internal Revenue Code (Global intangible low-taxed income - GILTI) does not correspond to Australia's CFC rules in relation to the hybrid mismatch subject to tax rules. Division 832 of the Income Tax Assessment Act 1997 contains Australia's hybrid mismatch rules. This includes subject to foreign tax rules in determining whether a deduction/non-inclusion outcome arises in r…