Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-1
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CAPITAL GAINS AND LOSSES: GENERAL TOPICS
Division 104
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CGT events
Subdivision 104-K
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Other CGT events
SECTION 104-255
Carried interests: CGT event K9
104-255(1)
CGT event K9 happens if you become entitled to receive a *payment of a *carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF or a *limited partner in a *VCMP.
104-255(2)
The time of the event is the time you become entitled to receive the *payment.
104-255(3)
You make a capital gain equal to the *capital proceeds from the *CGT event.
The carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF is the partner ' s entitlement to a distribution from the VCLP, ESVCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF.
104-255(5)
The carried interest of a *limited partner in a *VCMP is the partner ' s entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF in which the VCMP is a *general partner.
104-255(6)
The carried interest does not include:
(a) any part of the partner ' s entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the *VCLP, *ESVCLP, *AFOF or *VCMP; or
(b) any part of the partner ' s entitlement to that distribution that is attributable to the partner ' s *equity interest in the VCLP, ESVCLP, AFOF or VCMP.
Meaning of
payment
of carried interest
104-255(7)
Payment , of a *carried interest, includes:
(a) a payment that is attributable to the carried interest; or
(b) the giving of property in satisfaction of the carried interest: see section 103-5 ; or
(c) the giving of property in satisfaction of an entitlement that is attributable to the carried interest: see section 103-5 .
View history note
Hide history noteCGT event K9 happens if you become entitled to receive a *payment of a *carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF or a *limited partner in a *VCMP.
The time of the event is the time you become entitled to receive the *payment.
You make a capital gain equal to the *capital proceeds from the *CGT event.
Note:
You cannot make a capital loss.
Meaning of carried interest 104-255(4)The carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF is the partner ' s entitlement to a distribution from the VCLP, ESVCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF.
[ CCH Note: Act No 78 of 2007 , s 3 and Sch 8 item 111 inserts " , ESVCLP " after " VCLP " , in s 104-255(4), however there are two instances of " VCLP " in s 104-255(4). CCH has inserted " , ESVCLP " in both instances as it is presumed that this was the intention.]
The carried interest of a *limited partner in a *VCMP is the partner ' s entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF in which the VCMP is a *general partner.
The carried interest does not include:
(a) any part of the partner ' s entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the *VCLP, *ESVCLP, *AFOF or *VCMP; or
(b) any part of the partner ' s entitlement to that distribution that is attributable to the partner ' s *equity interest in the VCLP, ESVCLP, AFOF or VCMP.
Payment , of a *carried interest, includes:
(a) a payment that is attributable to the carried interest; or
(b) the giving of property in satisfaction of the carried interest: see section 103-5 ; or
(c) the giving of property in satisfaction of an entitlement that is attributable to the carried interest: see section 103-5 .
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