Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 9/16)
Character Range: 7576993–7579844

entity is a *member of a *sovereign entity group, treat the references in paragraphs 880‑20(1)(c) and (2)(c) to 100% as instead being references to more than 50%.

880‑110  Sovereign entity's deduction from membership interest etc.—loss not deductible
  A *sovereign entity cannot deduct an amount if:
 (a) the sovereign entity is covered by section 880‑125; and
 (b) the amount is a loss in respect of any of the following kinds of interest that the sovereign entity holds in another entity:
 (i) a *membership interest;
 (ii) a *debt interest;
 (iii) a *non‑share equity interest; and
 (c) the requirements in paragraphs 880‑105(1)(c), (d) and (e) would be satisfied, on the assumptions that:
 (i) the amount were *ordinary income or *statutory income; and
 (ii) the amount became ordinary income or statutory income of the sovereign entity at the time it arose; and
 (iii) references in those paragraphs to the test entity were references to the other entity mentioned in paragraph (b) of this section.

880‑115  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 sovereign entity is covered by section 880‑125; 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 880‑105(1)(c), (d) and (e) would be satisfied, on the assumptions that:
 (i) the capital gain were an amount of *ordinary income or *statutory income; and
 (ii) the amount mentioned in subparagraph (i) became ordinary income or statutory income of the sovereign entity immediately before the time the CGT event happened; and
 (iii) references in those paragraphs to the test entity were references to the other entity mentioned in paragraph (b) of this section.

880‑120  Sovereign entity's capital loss from membership interest etc. in trust or company—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 880‑115.

880‑125  Covered sovereign entities
  A *sovereign entity is covered by this section if it satisfies all of the following requirements:
 (a) the entity is funded solely by public monies;
 (b) all returns on the entity's investments are public monies;
 (c) the entity is not a partnership;
 (d) the entity is not any of the following:
 (i) a *public non‑financial entity;
 (ii) a *public financial entity (other than a public financial entity that only carries on central banking activities).

880‑130  Meaning of public non‑financial entity and public financial entity
 (1) An entity is a public non‑financial entity