Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 51 - Exempt amounts  

SECTION 51-54   Gain or profit from disposal of eligible venture capital investments  

Partners in VCLPs and ESVCLPs

51-54(1)    
An entity ' s share of any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if:

(a) it is made by a * VCLP, or an * ESVCLP, that is * unconditionally registered; and

(b) were that disposal or other realisation to be a * disposal of a * CGT asset, the entity ' s share of any * capital gain or * capital loss would be disregarded under section 118-405 or 118-407 .

51-54(1A)    

An entity ' s share of any gain or profit made:

(a) by an * ESVCLP that is * unconditionally registered; and

(b) from the disposal or other realisation of an * eligible venture capital investment;

is exempt from income tax to the extent that, were that disposal or other realisation to be a * disposal of a * CGT asset, the equivalent * capital gain arising from the * CGT event would be disregarded because of a partial exemption from the CGT event under section 118-408 .

Partners in AFOFs

51-54(2)    
An entity ' s share of any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if:

(a) it is made by:

(i) an * AFOF that is * unconditionally registered; or

(ii) a * VCLP, or an * ESVCLP, that is unconditionally registered and in which an AFOF that is * unconditionally registered is a partner; and

(b) were that disposal or other realisation to be a * disposal of a * CGT asset, the entity ' s share of any * capital gain or * capital loss would be disregarded under section 118-410 .

Eligible venture capital investors

51-54(3)    
Any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if:

(a) you are an * eligible venture capital investor; and

(b) were that disposal or other realisation to be a * disposal of a * CGT asset, any * capital gain or * capital loss would be disregarded under section 118-415 .