CHAPTER 2
-
LIABILITY RULES OF GENERAL APPLICATION
PART 2-20
-
TAX OFFSETS
History
Pt 2-20 inserted by No 56 of 1997.
Division 61
-
Generally applicable tax offsets
History
Div 61 inserted by No 56 of 1997.
Subdivision 61-P
-
ESVCLP tax offset
History
Subdiv 61-P inserted by No 54 of 2016, s 3 and Sch 2 item 2, applicable in relation to contributions made on or after 1 July 2016 to an ESVCLP that became registered, under subsection
13-1(1A)
of the
Venture Capital Act 2002
, on or after 7 December 2015 (whether or not it was conditionally registered, under subsection
13-5(1A)
of that Act, before that day). No 54 of 2016, s 3 and Sch 2 item 5 contains the following provision:
5 Contributions made to ESVCLPs in previous income years
5
Subdivision 61-P of the
Income Tax Assessment Act 1997
as added by this Part, and item 4 of this Part, apply in relation to the first income year starting on or after 1 July 2016 (the
initial income year
) as if:
(a)
any contribution that a limited partner of an ESVCLP made to the ESVCLP during an earlier income year were made during the initial income year; and
(b)
any eligible venture capital investments made by the ESVCLP:
(i)
during an earlier income year; and
(ii)
after the first contribution made by the partner to the ESVCLP;
were made during the initial income year.
Operative provisions
SECTION 61-770
Amount of the ESVCLP tax offset
-
members of trusts or partnerships
61-770(1)
If subsection
61-760(2)
applies, the amount of the *member
'
s *tax offset for the income year is as follows:
Determined share of notional tax offset
×
Notional tax offset amount
where:
determined share of notional tax offset
is the percentage determined under subsection (2) for the *member.
notional tax offset amount
is what would, under section
61-765
, have been the amount of the trust
'
s or partnership
'
s *tax offset (the
notional tax offset
) if the trust or partnership had been an individual.
61-770(2)
The trustee or partnership may determine the percentage of the notional tax offset that is the *member
'
s share of the notional tax offset.
61-770(3)
If, under the terms and conditions under which the trust or partnership operates, the *member would be entitled to a fixed proportion of any *capital gain from a *disposal:
(a)
relating to the trust or partnership; and
(b)
of investments made as a result of the contributions that gave rise to the notional tax offset; and
(c)
happening at the end of the income year to which the notional tax offset relates;
the percentage determined under subsection (2) must be equivalent to that fixed proportion, and a determination of any other percentage has no effect.
History
S 61-770(3) substituted by No 8 of 2020, s 3 and Sch 2 item 4, effective 1 April 2020 and applicable in relation to income years commencing on or after 1 July 2018. S 61-770(3) formerly read:
61-770(3)
If, under the terms and conditions under which the trust or partnership operates, the *member would be entitled to a fixed proportion of any *capital gain from a *disposal, were the disposal to happen in relation to trust or partnership, of investments made as a result of contributions that gave rise to the notional tax offset:
(a)
the percentage determined under subsection (2) must be equivalent to that fixed proportion at the end of the income year to which the notional tax offset relates; and
(b)
a determination of any other percentage has no effect.
61-770(4)
The trustee or partnership must give the *member written notice of the determination. The notice:
(a)
must enable the member to work out the amount of the member
'
s *tax offset by including enough information to enable the member to work out the member
'
s share of the notional tax offset; and
(b)
must be given to the member within 3 months after the end of the income year, or within such further time as the Commissioner allows.
61-770(5)
The sum of all the percentages determined under subsection (2) in relation to the *members of the trust or partnership must not exceed 100%.
History
S 61-770 inserted by No 54 of 2016, s 3 and Sch 2 item 2, applicable in relation to contributions made on or after 1 July 2016 to an ESVCLP that became registered, under subsection
13-1(1A)
of the
Venture Capital Act 2002
, on or after 7 December 2015 (whether or not it was conditionally registered, under subsection
13-5(1A)
of that Act, before that day). See note under Subdiv
61-P
heading.