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Venture Capital Bill 2002

Part 4 Determinations by the PDF Board concerning certain investments

Division 25 Determinations by the PDF Board concerning certain investments

   

Guide to Division 25

25-1   What this Division is about

The PDF Board can make determinations having the effect of relaxing the requirements of paragraph 18-425(2)(b) of the Income Tax Assessment Act 1997 .

Note:          Paragraph 18-425(2)(b) of the Income Tax Assessment Act 1997 is about how closely a company is connected with Australia. It is one of the requirements that a company must meet in order for investments in the company to be eligible venture capital investments. The capital gains tax exemption under Subdivision 118-F of that Act only applies in relation to eligible venture capital investments.

Table of sections

Operative provisions

25-5          PDF Board may determine a shorter period

25-10        PDF Board may determine that a requirement does not apply

Operative provisions

25-5   PDF Board may determine a shorter period

             (1)  The * PDF Board may, on the application of a * general partner of a * limited partnership registered as a * VCLP or an * AFOF, determine a shorter period during which a * company must meet the requirements of paragraph 118-425(2)(b) of the Income Tax Assessment Act 1997 .

             (2)  The application must be in the * form approved by the PDF Board.

             (3)  In considering whether to make a determination, the * PDF Board must apply the principles specified under subsection (4).

             (4)  The * PDF Board may make principles about making determinations under this section.

             (5)  If the * PDF Board determines a shorter period, the PDF Board must notify the * general partner as soon as practicable after the determination is made.

             (6)  If the * PDF Board refuses to make a determination, the PDF Board must:

                     (a)  notify the * general partner as soon as practicable after the refusal; and

                     (b)  provide reasons for the refusal.

             (7)  Principles made under subsection (4) are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901 .

25-10   PDF Board may determine that a requirement does not apply

             (1)  The * PDF Board may, on the application of a * general partner of a partnership registered as a VCLP or an AFOF, determine that either or both of the following requirements do not apply to a * company:

                     (a)  the requirement referred to under subparagraph 118-425(2)(b)(i) of the Income Tax Assessment Act 1997 that more than 50% of the people who are currently engaged by the company to perform services must perform those services primarily in Australia;

                     (b)  the requirement referred to under subparagraph 118-425(2)(b)(ii) of that Act that more than 50% of its assets (determined by value) must be situated in Australia.

             (2)  The application must be in the * form approved by the PDF Board.

             (3)  In considering whether to make a determination, the * PDF Board must apply the principles specified under subsection (4).

             (4)  The * PDF Board may make principles about making determinations under this section.

             (5)  If the * PDF Board determines that a requirement does not apply, the PDF Board must notify the * general partner as soon as practicable after the determination is made.

             (6)  If the * PDF Board refuses to make a determination, the PDF Board must:

                     (a)  notify the * general partner as soon as practicable after the refusal; and

                     (b)  provide reasons for the refusal.

             (7)  Principles made under subsection (4) are disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901 .