Income Tax Assessment Act 1997
A *venture capital debit arises for a *PDF where the PDF's net venture capital credits for the income year exceed whichever is the lesser of:
(a) the PDF's CGT limit for that income year; and
(b) the tax paid by the PDF on its *SME income component for that income year. Net venture capital credits 210-125(2)
The *PDF's net venture capital credits for the income year is:
|Venture capital credits - Venture capital debits|
The *PDF's CGT limit for the income year is worked out using the formula:
|Ordinary capital gains from
venture capital CGT events
Ordinary capital gains from
all SME CGT events
|×||*Section 124ZZB SME
|× SME tax rate|
ordinary capital gains from venture capital CGT events
means the total of *ordinary capital gains for the income year for *CGT events in relation to shares in companies that are *qualifying SME investments.
The tax paid by the PDF on its SME income component for the income year is the tax paid by the *PDF on its *SME income component after allowing *tax offsets referred to in section 4-10 .