Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 210 - Venture capital franking  

Subdivision 210-H - Effect of receiving a distribution franked with a venture capital credit  

Operative provisions

SECTION 210-170   Tax offset for certain recipients of distributions franked with venture capital credits  

210-170(1)    
The recipient of a *distribution *franked with a venture capital credit is entitled to a *tax offset for the income year in which the distribution is made if:

(a) the recipient is a relevant venture capital investor; and

(b) the recipient is not:

(i) a partnership; or

(ii) a trustee (other than the trustee of a *complying superannuation entity, a *non-complying superannuation fund or a *non-complying approved deposit fund); and

(c) the recipient satisfies the *residency requirement for an entity receiving a distribution; and

(d) the distribution is not *exempt income of the recipient (ignoring section 124ZM of the Income Tax Assessment Act 1936 ); and

(e) the recipient is a qualified person in relation to the distribution for the purposes of Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936 ; and

(f) the distribution is not part of a *dividend stripping operation; and

(g) the Commissioner has not made a determination under paragraph 204-30(3)(c) that no *imputation benefit is to arise for the receiving entity in respect of the distribution; and

(h) the Commissioner has not made a determination under paragraph 177EA(5)(b) that no imputation benefit is to arise in respect of the distribution to the recipient.

Relevant venture capital investors

210-170(2)    
The following entities are relevant venture capital investors :

(a) the trustee of an entity that is a *complying superannuation entity in relation to the income year in which the *distribution is made and is not a *self managed superannuation fund;

(b) (Repealed by No 64 of 2020)

(c) (Repealed by No 64 of 2020)

(d) a *life insurance company.