Document ID: chunk:federal_register_of_legislation:C2019A00034:clause:4_7:p2
Version: federal_register_of_legislation:C2019A00034
Segment Type: clause
Provision Reference: sch 4 cl 7 (pt 2/3)
Character Range: 77871–80565

if:
 (a) the amount is a loss in respect of an investment asset under a scheme; and
 (b) the requirements in paragraphs 880‑5(b) to (g) are satisfied.

880‑15  Sovereign entity's capital gain from membership interest etc.—gain disregarded
  Disregard a capital gain of a sovereign entity from a CGT event that happens in relation to a CGT asset if:
 (a) the capital gain arises under a scheme; and
 (b) the CGT asset is a membership interest, non‑share equity interest or debt interest in another entity; and
 (c) the requirements in paragraphs 880‑5(b) to (g) are satisfied (on the assumption that references in those paragraphs to the investment asset were references to the CGT asset).

880‑20  Sovereign entity's capital loss from membership interest etc.—loss disregarded
  Disregard a capital loss of a sovereign entity from a CGT event that happens at a time if, on the assumption that the loss were a capital gain that happened at that time, the capital gain would be disregarded because of section 880‑15.

880‑25  Asset of sovereign entity—deemed sale and purchase
 (1) This section applies if:
 (a) a sovereign entity acquired an asset (other than money) on or before 27 March 2018 under a scheme; and
 (b) on or before 27 March 2018, the sovereign entity applied for a private ruling in relation to the scheme; and
 (c) before 1 July 2026, the Commissioner gave the entity a private ruling confirming that income from the asset was not subject to income tax, or withholding tax, because of the doctrine of sovereign immunity; and
 (d) the private ruling applied during at least part of the period:
 (i) starting on 27 March 2018; and
 (ii) ending before 1 July 2026;
  regardless of whether the private ruling started to apply before 27 March 2018, or ceased to apply before 1 July 2026; and
 (e) the sovereign entity holds the asset on the day mentioned in subsection (5).
 (2) For the purposes mentioned in subsection (3), the sovereign entity is taken:
 (a) to have disposed of the asset, immediately before the day mentioned in subsection (5), for a consideration equal to its market value; and
 (b) to have acquired the asset again, immediately after the disposal mentioned in paragraph (a), for a consideration equal to the higher of the following:
 (i) its market value immediately before that disposal;
 (ii) its cost base immediately before that disposal.
 (3) The purposes are as follows:
 (a) the purposes of Parts 3‑1 and 3‑3 of the Income Tax Assessment Act 1997;
 (b) if the asset is a revenue asset—determining whether an amount is included in, or can be deducted from, the assessable income of the entity.
 (4) Despite subsection (3):
 (a) disregard any capital gain