EXPLANATORY STATEMENT
Foreign States Immunities Regulations (Amendment)
1988 No. 36
Section 43 of the Foreign States Immunities Act 1985 empowers the Governor-General to make regulations, not inconsistent with that Act, prescribing matters necessary or convenient to be prescribed for carrying out or giving effect to that Act.
Section 20 of the Foreign States Immunities Act 1985 provides that a foreign State is not immune in a proceeding in so far as the proceeding concerns an obligation imposed on it by or under a provision of a law of Australia with respect to taxation, being a provision that is prescribed for the purposes of s.20 of the Foreign States Immunities Act 1985.
Regulations prescribing for the purposes of s.20 of the Foreign States Immunities Act 1985 legislation of the States and Northern Territory and of the Australian Capital Territory came into force on 20 May 1987 (Foreign States Immunities Regulations: Statutory Rules No. 77 of 1987 refers).
The attached Regulations repeal and substitute Regulation 3 of the Foreign States Immunities Regulations and the Schedule thereto.
The object of these substitutions is to prescribe additional laws for the purposes of s.20 of the Foreign States Immunities Act 1985 as requested by the Commissioner of Taxation, the ACT Administration Central Office and the Norfolk Island Government. Legislation previously prescribed for the benefit of the States and Northern Territory remains unaltered.
The prescribing of legislation for the purposes of s.20 of the Foreign States Immunities Act 1985 does not affect the substantive liability of a foreign State to pay particular taxes. It enables a foreign State to be sued to recover a tax for which it is liable.