Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 5/16)
Character Range: 7567043–7569718

Assessment Act 1936 have the effect they would have, in relation to each *commencing day asset owned by the *CFC at the residence change time, if those modifications were used to work out the taxable income of the CFC rather than its *attributable income.
 (4) However, if a *capital gain on a *commencing day asset of the *CFC (for a period before the residence change time) was *subject to foreign tax in a *listed country, the modifications of Parts 3‑1 and 3‑3 of this Act in sections 411 to 414 of the Income Tax Assessment Act 1936 have the effect they would have in relation to the asset if:
 (a) those modifications were used to work out the taxable income of the CFC rather than its *attributable income; and
 (b) the *commencing day of the CFC were the residence change time.
Note: This section is disregarded in calculating the attributable income of a CFC: see section 410 of the Income Tax Assessment Act 1936.

Division 880—Sovereign entities and activities

Table of Subdivisions
880‑A Basic concepts
880‑B Basic tax treatment of sovereign entities
880‑C Sovereign immunity
880‑D Consular activities

Subdivision 880‑A—Basic concepts

Guide to Subdivision 880‑A

880‑10  What this Subdivision is about
      This Subdivision defines several terms that are fundamental to the operation of this Division, such as sovereign entity and sovereign entity group.

Table of sections

Operative provisions
880‑15 Meaning of sovereign entity
880‑20 Meaning of sovereign entity group

Operative provisions

880‑15  Meaning of sovereign entity
  A sovereign entity is any of the following:
 (a) a body politic of a foreign country, or a part of a foreign country;
 (b) a *foreign government agency;
 (c) an entity:
 (i) in which an entity covered by paragraph (a) or (b) holds a *total participation interest of 100%; and
 (ii) that is not an Australian resident; and
 (iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.

880‑20  Meaning of sovereign entity group
 (1) Each of the following is part of a sovereign entity group:
 (a) a body politic of a foreign country (other than a body politic of a part of that foreign country);
 (b) a *foreign government agency in relation to that foreign country (other than a foreign government agency in relation to a part of that foreign country);
 (c) an entity:
 (i) in which an entity covered by paragraph (a) or (b) holds a *total participation interest of 100%; and
 (ii) that is not an Australian resident; and
 (iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.
 (2) Each of the