(1) An entity's * ordinary income * derived during an income year (the present year ), or * statutory income for the present year, is exempt from income tax to the extent that it is from * shipping activities that:
(a) relate to a vessel for which the entity has a * shipping exempt income certificate for the present year; and
(b) take place on a day (a certified day ) to which the certificate applies.
Note: For the days to which the certificate applies, see subsection 8(5) of the Shipping Reform (Tax Incentives) Act 2012 .
(2) Subsection (1) does not apply to * ordinary income * derived from, or * statutory income from, * incidental shipping activities relating to the vessel if:
where:
"total core shipping income" means the sum of the entity's:
(a) * ordinary income * derived from * core shipping activities relating to the vessel on the certified days (see paragraph (1)(b)); and
(b) * statutory income from those activities on those days.
"total incidental shipping income" means the sum of the entity's:
(a) * ordinary income * derived from * incidental shipping activities relating to the vessel on the certified days (see paragraph (1)(b)); and
(b) * statutory income from those activities on those days.