INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 880 - Sovereign entities and activities  

SECTION 880-5   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.



This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.