Document ID: chunk:federal_register_of_legislation:C2024C00267:section:4:p27
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 4 (pt 27/64)
Character Range: 769889–772589

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 or capital loss the sovereign entity makes because of the disposal mentioned in paragraph (2)(a); or
 (b) if the asset is a revenue asset—disregard any amount that could (apart from this subsection) be included in, or be deducted from, the assessable income of the entity as a result of that disposal.
 (5) For the purposes of paragraphs (1)(e) and (2)(a), the day is:
 (a) unless paragraph (b) applies—the later of the following days:
 (i) 1 July 2026;
 (ii) the day before the private ruling ceases to apply; or
 (b) a day earlier than the day mentioned in paragraph (a), if:
 (i) the scheme mentioned in paragraph (1)(a) is not, when it is first carried out, materially different to the scheme specified in the private ruling; and
 (ii) it becomes, on the earlier day, materially different to the scheme specified in the private ruling.

Chapter 5—Administration

Part 5‑35—Miscellaneous

Division 909—Regulations

Table of sections
909‑1