Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 50.55

  (1)   An entity covered by item   1.3, 1.4, 6.1 or 6.2 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;

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

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

  (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.