Document ID: chunk:federal_register_of_legislation:C2019A00034:clause:4_6:p2
Version: federal_register_of_legislation:C2019A00034
Segment Type: clause
Provision Reference: sch 4 cl 6 (pt 2/6)
Character Range: 64419–67350

What this Subdivision is about
      This Subdivision provides that a sovereign entity is liable to pay tax. It also provides that a body politic (or a foreign government agency) of a foreign country, or part of a foreign country, is treated as being a person that is not a resident of Australia, but is a resident of the foreign country.

Table of sections

Operative provisions
880‑55 Sovereign entity liable to pay tax
880‑60 Bodies politic of foreign countries and foreign government agencies treated as foreign residents

Operative provisions

880‑55  Sovereign entity liable to pay tax
  A *sovereign entity is liable to pay *tax.
Note: The actual amount of tax payable may be nil.

880‑60  Bodies politic of foreign countries and foreign government agencies treated as foreign residents
 (1) For the purposes of this Act, treat a body politic of a foreign country, or a part of a foreign country:
 (a) as being a person that is not a resident of Australia; and
 (b) as being a resident of the foreign country.
 (2) For the purposes of this Act, treat a *foreign government agency in relation to a foreign country (including a foreign government agency in relation to a part of a foreign country):
 (a) as being a person that is not a resident of Australia; and
 (b) as being a resident of the foreign country.

Subdivision 880‑C—Sovereign immunity

Guide to Subdivision 880‑C

880‑100  What this Subdivision is about
      This Subdivision provides a tax exemption for certain sovereign entities in respect of certain returns on membership interests (etc.) in entities that are Australian resident companies or managed investment trusts. To obtain this exemption, the relevant sovereign entity group can hold only a portfolio interest in the entity, and cannot have relevant influence over the entity.

Table of sections

Operative provisions
880‑105 Sovereign entity's income from membership interest etc. in trust or company—non‑assessable non‑exempt income
880‑110 Sovereign entity's deduction from membership interest etc.—loss not deductible
880‑115 Sovereign entity's capital gain from membership interest etc.—gain disregarded
880‑120 Sovereign entity's capital loss from membership interest etc. in trust or company—loss disregarded
880‑125 Covered sovereign entities
880‑130 Meaning of public non‑financial entity and public financial entity

Operative provisions

880‑105  Sovereign entity's income from membership interest etc. in trust or company—non‑assessable non‑exempt income
 (1) An amount of *ordinary income or *statutory income of a *sovereign entity is not assessable income and is not *exempt income if:
 (a) the sovereign entity is covered by section 880‑125; and
 (b) the amount is a return on any of the following kinds of interest that the sovereign entity holds in another entity (the test entity):
 (i) a *membership interest;
 (ii) a *debt interest;
 (iii) a *non‑share equity interest; and
 (c)