Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 880 - Sovereign entities and activities  

Subdivision 880-C - Sovereign immunity  

Operative provisions

SECTION 880-110  

880-110   Sovereign entity ' s deduction from membership interest etc. - loss not deductible  

A *sovereign entity cannot deduct an amount if:

(a) the sovereign entity is covered by section 880-125 ; and

(b) the amount is a loss in respect of any of the following kinds of interest that the sovereign entity holds in another entity:

(i) a *membership interest;

(ii) a *debt interest;

(iii) a *non-share equity interest; and

(c) the requirements in paragraphs 880-105(1)(c) , (d) and (e) would be satisfied, on the assumptions that:

(i) the amount were *ordinary income or *statutory income; and

(ii) the amount became ordinary income or statutory income of the sovereign entity at the time it arose; and

(iii) references in those paragraphs to the test entity were references to the other entity mentioned in paragraph (b) of this section.