Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 51 - Exempt amounts  

SECTION 51-54   Gain or profit from disposal of eligible venture capital investments  

Partners in VCLPs and ESVCLPs

51-54(1)  
An entity ' s share of any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:


(a) it is made by a *VCLP, or an *ESVCLP, that is *unconditionally registered; and


(b) were that disposal or other realisation to be a *disposal of a *CGT asset, the entity ' s share of any *capital gain or *capital loss would be disregarded under section 118-405 or 118-407 .

51-54(1A)  


An entity ' s share of any gain or profit made:


(a) by an *ESVCLP that is *unconditionally registered; and


(b) from the disposal or other realisation of an *eligible venture capital investment;

is exempt from income tax to the extent that, were that disposal or other realisation to be a *disposal of a *CGT asset, the equivalent *capital gain arising from the *CGT event would be disregarded because of a partial exemption from the CGT event under section 118-408 .

Partners in AFOFs

51-54(2)  
An entity ' s share of any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:


(a) it is made by:


(i) an *AFOF that is *unconditionally registered; or

(ii) a *VCLP, or an *ESVCLP, that is unconditionally registered and in which an AFOF that is *unconditionally registered is a partner; and


(b) were that disposal or other realisation to be a *disposal of a *CGT asset, the entity ' s share of any *capital gain or *capital loss would be disregarded under section 118-410 .

Eligible venture capital investors

51-54(3)  
Any gain or profit made from the disposal or other realisation of an *eligible venture capital investment is exempt from income tax if:


(a) you are an *eligible venture capital investor; and


(b) were that disposal or other realisation to be a *disposal of a *CGT asset, any *capital gain or *capital loss would be disregarded under section 118-415 .


 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.