INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 12A - Venture capital franking  

Subdivision F - Venture capital deficit tax  

SECTION 160ASEN   LIABILITY TO VENTURE CAPITAL DEFICIT TAX  

160ASEN(1)   [When liability exists]  

A PDF is liable to pay venture capital deficit tax if it has a venture capital sub-account deficit at the end of a franking year.

Note 1:

Venture capital deficit tax is imposed by the Venture Capital Deficit Tax Act.

Note 2:

Under subsection 4(2) of that Act, for the purposes of working out the PDF's liability for venture capital deficit tax, a refund of income tax in relation to the PDF's taxable income for a year of income that is received within 6 months after the end of the franking year that ends in or at the same time as the year of income is taken to have been received on the last day of the franking year.

160ASEN(2)   [Remission of part of tax]  

The Commissioner may, in the Commissioner's discretion, remit part of the venture capital deficit tax if the amount of the venture capital deficit tax is worked out under subsection 5(2) of the Venture Capital Deficit Tax Act. The amount remitted must not exceed the difference between:

(a) the amount of the venture capital deficit tax; and

(b) the amount that would have been the amount of that tax if it had been calculated under subsection 5(1) of the Venture Capital Deficit Tax Act.

160ASEN(3)   [Where refund received]  

If:

(a) a PDF receives a refund of income tax in relation to the PDF's taxable income for a year of income; and

(b) the receipt of the refund creates or increases a deficit in the PDF's venture capital sub-account under subsection 4(2) of the Venture Capital Deficit Tax Act;

a venture capital credit of the PDF arises equal to the extent to which the receipt of the refund creates or increases that deficit. The credit arises when the refund is received.