Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 880.25

  (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.

Table of sections

909 - 1   Regulations