NEW BUSINESS TAX SYSTEM (VENTURE CAPITAL DEFICIT TAX) ACT 2000 (REPEALED)

SECTION 1 (Repealed by 101 of 2006)  

1   SHORT TITLE  
This Act may be cited as the New Business Tax System (Venture Capital Deficit Tax) Act 2000.

SECTION 2 (Repealed by 101 of 2006)  

2   COMMENCEMENT  
This Act is taken to have commenced immediately after Schedule 3 to the New Business Tax System (Capital Gains Tax) Act 1999 commences.

SECTION 3 (Repealed by 101 of 2006)  

3   DEFINITIONS  
In this Act:

applicable general company tax rate
means the rate specified under paragraph (baa) of the definition of applicable general company tax rate in section 160APA of the Income Tax Assessment Act 1936 in relation to a company's liability to pay class C franking deficit tax.

deficit
for a venture capital sub-account has the same meaning as in Part IIIAA of the Income Tax Assessment Act 1936.

franking year
has the same meaning as in Part IIIAA of the Income Tax Assessment Act 1936.

PDF
has the same meaning as in the Income Tax Assessment Act 1936.

venture capital credits
has the same meaning as in Part IIIAA of the Income Tax Assessment Act 1936.

venture capital sub-account
has the same meaning as in Part IIIAA of the Income Tax Assessment Act 1936.

SECTION 4 (Repealed by 101 of 2006)   IMPOSITION OF TAX  

4(1)   [Tax imposed at end of franking year]  

Tax is imposed on a deficit in a PDF's venture capital sub-account at the end of a franking year.

Note:

See section 160AQJAA of the Income Tax Assessment Act 1936.

4(2)   [Refunds of income tax]  

For the purposes of this section, a refund of income tax in relation to a 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 be received on the last day of the franking year.

Note:

The operation of this subsection may create, or increase, a deficit in the PDF's venture capital sub-account on the last day of the franking year. This may make the PDF liable to, or increase its liability to, venture capital deficit tax.

SECTION 5 (Repealed by 101 of 2006)   AMOUNT OF TAX  

5(1)   [Calculation of tax - deficit up to 10% of total credits]  

If the deficit does not exceed 10% of the PDF's total venture capital credits arising during the franking year, the amount of tax is worked out using the formula:

where:

company tax rate
means the applicable general company tax rate.

venture capital sub-account deficit
means the amount of the deficit in the venture capital sub-account.

5(2)   [Calculation of tax - deficit more than 10% of total credits]  

If the deficit exceeds 10% of the PDF's total venture capital credits arising during the franking year, the amount of tax is worked out using the formula:

where:

company tax rate
means the applicable general company tax rate.

venture capital sub-account deficit
means the amount of the deficit in the venture capital sub-account.