Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 50.50

  (1)   An entity covered by item   1.1 is not exempt from income tax unless the entity:

  (a)   has a physical presence in Australia and, to that extent, incurs its expenditure and pursues its objectives principally in Australia; or

  (b)   is an institution that meets the description and requirements in item   1 of the table in section   30 - 15; or

  (c)   is a prescribed institution which is located outside Australia and is exempt from income tax in the country in which it is resident; or

  (d)   is a prescribed institution that has a physical presence in Australia but which incurs its expenditure and pursues its objectives principally outside Australia;

and the entity satisfies the conditions in subsection   (2).

Note 1:   Certain distributions may be disregarded: see section   50 - 75.

Note 2:   The entity must also meet other conditions to be exempt from income tax: see section   50 - 52.

  (2)   The entity must:

  (a)   comply with all the substantive requirements in its governing rules; and

  (b)   apply its income and assets solely for the purpose for which the entity is established.