Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 360 - Early stage investors in innovation companies  

Subdivision 360-A - Tax incentives for early stage investors in innovation companies  

Operative provisions

SECTION 360-15   Entitlement to the tax offset  


General case

360-15(1)    
You are entitled to a *tax offset for an income year if:


(a) you are none of the following:


(i) a trust or a partnership;

(ia) an *ESVCLP;

(ii) a *widely held company or a *100% subsidiary of a widely held company; and


(b) at a particular time during the income year, a company issues you with *equity interests that are *shares in the company; and


(c) subsection 360-40(1) (about early stage innovation companies) applies to the company immediately after that time; and


(d) neither you nor the company is an *affiliate of each other at that time; and


(e) the issue of those shares is not an *acquisition of *ESS interests under an *employee share scheme; and


(f) immediately after the issue of those shares, you do not hold equity interests in the company, or in an entity *connected with the company, that carry the right to:


(i) receive more than 30% of any distribution of income by the company or the entity; or

(ii) receive more than 30% of any distribution of capital by the company or the entity; or

(iii) exercise, or control the exercise of, more than 30% of the total voting power in the company or the entity.


Members of trusts or partnerships

360-15(2)    
A *member of a trust or partnership (other than a partnership that is an *ESVCLP) at the end of an income year is entitled to a *tax offset for the income year if:


(a) the trust or partnership would be entitled to a tax offset, under this section, for the income year if the trust or partnership were an individual; and


(b) the member is not a *widely held company or a *100% subsidiary of a widely held company.



Trustees

360-15(3)    
A trustee of a trust is entitled to a *tax offset for an income year if:


(a) the trustee would be entitled to a tax offset, under subsection (1), for the income year if the trustee were an individual; and


(b) the trustee is liable to be assessed or has been assessed, and is liable to pay *tax, on a share of, or all or a part of, the trust ' s *net income under section 98 , 99 or 99A of the Income Tax Assessment Act 1936 for the income year.


View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.