Income Tax Assessment Act 1997
CHAPTER 2
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LIABILITY RULES OF GENERAL APPLICATION
PART 2-15
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NON-ASSESSABLE INCOME
An entity's share of income derived from an *eligible venture capital investment is exempt from income tax if:
(a) the entity is a partner in a *limited partnership; and
(b) the partnership made the investment; and
(c) the investment meets all of the *additional investment requirements for ESVCLPs for the investment; and
(d) when the partnership made the investment, the partnership was an *early stage venture capital limited partnership that was *unconditionally registered; and
(e) when the income was derived, the partnership:
An entity's share of income derived from an *eligible venture capital investment is exempt from income tax if:
(a) the entity is a partner in an *AFOF; and
(b) the AFOF is a partner in a partnership that made the investment; and
(c) when the partnership made the investment, the partnership was an *early stage venture capital limited partnership that was *unconditionally registered; and
(d) the investment meets all of the *additional investment requirements for ESVCLPs for the investment; and
(e) when the income was derived, the partnership:
However, if the entity is a *general partner in the partnership, this section does not apply to the entity unless the entity is:
(a) an Australian resident; or
(b) a resident of a foreign country in respect of which a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936 ) is in force that is an agreement of a kind referred to in subparagraph (b)(i), (ia), (ii), (iii), (iv) or (v) of that definition. 51-52(4)
For the purposes of this section, the place of residence of a *general partner in a *limited partnership:
(a) that is a company or limited partnership; and
(b) that is not an Australian resident;
For the purposes of this section, an entity's share of income derived from an *eligible venture capital investment that is an investment in a unit trust includes any present entitlement of the entity, as a beneficiary, to a share of an amount included in the assessable income of the unit trust under section 102-5 . Carried interests 51-52(6)
This section does not apply to an entity's share of income derived from an *eligible venture capital investment to the extent that the income is a payment of a *carried interest of a *general partner in an *ESVCLP or an *AFOF.
Division 51
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Exempt amounts
SECTION 51-52
Income derived from eligible venture capital investments by ESVCLPs
General
51-52(1)
An entity's share of income derived from an *eligible venture capital investment is exempt from income tax if:
(a) the entity is a partner in a *limited partnership; and
(b) the partnership made the investment; and
(c) the investment meets all of the *additional investment requirements for ESVCLPs for the investment; and
(d) when the partnership made the investment, the partnership was an *early stage venture capital limited partnership that was *unconditionally registered; and
(e) when the income was derived, the partnership:
(i) owned the investment; and
Partners in AFOFs 51-52(2)
(ii) was an early stage venture capital limited partnership that was unconditionally registered.
An entity's share of income derived from an *eligible venture capital investment is exempt from income tax if:
(a) the entity is a partner in an *AFOF; and
(b) the AFOF is a partner in a partnership that made the investment; and
(c) when the partnership made the investment, the partnership was an *early stage venture capital limited partnership that was *unconditionally registered; and
(d) the investment meets all of the *additional investment requirements for ESVCLPs for the investment; and
(e) when the income was derived, the partnership:
(i) owned the investment; and
Residency requirements for general partners 51-52(3)
(ii) was an early stage venture capital limited partnership that was unconditionally registered.
However, if the entity is a *general partner in the partnership, this section does not apply to the entity unless the entity is:
(a) an Australian resident; or
(b) a resident of a foreign country in respect of which a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936 ) is in force that is an agreement of a kind referred to in subparagraph (b)(i), (ia), (ii), (iii), (iv) or (v) of that definition. 51-52(4)
For the purposes of this section, the place of residence of a *general partner in a *limited partnership:
(a) that is a company or limited partnership; and
(b) that is not an Australian resident;
is the place in which the general partner has its central management and control.
Beneficiaries ' shares of capital gains made by unit trusts 51-52(5)For the purposes of this section, an entity's share of income derived from an *eligible venture capital investment that is an investment in a unit trust includes any present entitlement of the entity, as a beneficiary, to a share of an amount included in the assessable income of the unit trust under section 102-5 . Carried interests 51-52(6)
This section does not apply to an entity's share of income derived from an *eligible venture capital investment to the extent that the income is a payment of a *carried interest of a *general partner in an *ESVCLP or an *AFOF.
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