Tax Laws Amendment (2004 Measures No. 3) Act 2004 (105 of 2004)

Schedule 1   Venture capital

Part 2   Venture Capital Act amendments

Venture Capital Act 2002

17   At the end of Division 25

Add:

25-15 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:

(a) a company’s primary activity is not an ineligible activity mentioned in subsection 118-425(13) of the Income Tax Assessment Act 1997; and

(b) the company’s failure to satisfy at least 2 of the requirements in subsection 118-425(3) of that Act is temporary and did not exist at the time the relevant investment in the company was made and, if it has been disposed of, when it was disposed of.

(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 makes a determination under subsection (1), 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.