Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 (54 of 2016)

Schedule 2   Venture capital investment

Part 6   Foreign venture capital funds of funds

Income Tax Assessment Act 1997

47   After subsection 118-420(5)

Insert:

(6) An entity is a widely held foreign venture capital fund of funds if:

(a) the entity is a *foreign venture capital fund of funds; and

(b) the entity is a *widely held entity; and

(c) *eligible venture capital partners (other than foreign venture capital fund of funds) ultimately hold the rights to at least 90% of the entity's income; and

(d) each other entity who:

(i) if the entity is a *limited partnership - is a *general partner of the partnership; or

(ii) otherwise - exercises day to day control of the entity;

is a *foreign resident.