Document ID: chunk:federal_register_of_legislation:C2019A00034:clause:4_7:p1
Version: federal_register_of_legislation:C2019A00034
Segment Type: clause
Provision Reference: sch 4 cl 7 (pt 1/3)
Character Range: 75406–78131

7  At the end of Part 4‑5
Add:

Division 880—Sovereign entities and activities

Table of sections
880‑1 Application of Division 880 of the Income Tax Assessment Act 1997
880‑5 Certain income of sovereign entity in respect of a scheme is non‑assessable non‑exempt income if covered by a private ruling
880‑10 Certain amounts of sovereign entity in respect of a scheme are not deductible if covered by a private ruling
880‑15 Sovereign entity's capital gain from membership interest etc.—gain disregarded
880‑20 Sovereign entity's capital loss from membership interest etc.—loss disregarded
880‑25 Asset of sovereign entity—deemed sale and purchase

880‑1  Application of Division 880 of the Income Tax Assessment Act 1997
  Division 880 of the Income Tax Assessment Act 1997 applies to the 2019‑20 income year and later income years.

880‑5  Certain income of sovereign entity in respect of a scheme is non‑assessable non‑exempt income if covered by a private ruling
  An amount of ordinary income or statutory income of a sovereign entity for an income year is not assessable income and is not exempt income if:
 (a) the amount is a return on an investment asset under a scheme; and
 (b) the sovereign entity acquired the investment asset on or before 27 March 2018 under the scheme; and
 (c) on or before 27 March 2018, the sovereign entity applied for a private ruling in relation to the scheme; and
 (d) before 1 July 2026, the Commissioner gave the entity a private ruling confirming that income from the investment asset was not subject to income tax, or withholding tax, because of the doctrine of sovereign immunity; and
 (e) 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
 (f) the scheme carried out is not materially different to the scheme specified in the private ruling; and
 (g) the income year is:
 (i) unless subparagraph (ii) applies—the 2025‑26 income year or an earlier income year; or
 (ii) if the last income year to which the private ruling relates is a later income year than the 2025‑26 income year—that later income year, or an earlier income year.

880‑10  Certain amounts of sovereign entity in respect of a scheme are not deductible if covered by a private ruling
  A sovereign entity cannot deduct an amount for an income year 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