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.


 

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