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 360-55   Modified CGT treatment - partnerships  

360-55(1)    
The purpose of this section is to ensure that the modifications made by section 360-50 apply to each partner in a partnership in a case where the partnership is the entity that is issued with the *share mentioned in subsection 360-50(1) .

360-55(2)    
In such a case, subsections 360-50(2) to (4) apply as if:

(a) the first reference in those subsections to the entity were a reference to each partner in the partnership; and

(b) the first reference in those subsections to the *share were a reference to the partner ' s interest in the share.

Note:

The references to the entity and the share in the paragraphs of subsections 360-50(3) and (4) continue to apply unchanged.

360-55(3)    
In such a case, treat subsection 360-50(5) as if it read as follows:

If the partnership has continuously held the *share since its issue, on the tenth anniversary of its issue:

(a) the *first element of the *cost base for a partner ' s interest in the share becomes so much of the share ' s *market value on that anniversary as is calculated by reference to the partnership agreement, or partnership law if there is no agreement; and

(b) the *first element of the *reduced cost base is worked out similarly.