Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 118 - Exemptions  

Subdivision 118-G - Venture capital: investment by superannuation funds for foreign residents  

SECTION 118-510   Meaning of resident investment vehicle  

118-510(1)    
A resident investment vehicle is a company that is an Australian resident, or a trust that is a *resident trust for CGT purposes, if:

(a) the sum of:

(i) the total value of the assets of the company or trust, and

(ii) the total value of the assets of any company or trust *connected with the first company or trust; and

(iii) the amount of the investment proposed to be made in venture capital equity in the company or trust by the relevant *venture capital entity;

is not more than $50,000,000 just before the time (the acquisition time ) when the relevant venture capital entity acquires venture capital equity in the company or trust; and

(b) the primary activity of the company or trust is not, at any time, property development or land ownership.

118-510(2)    
However, a trust is not a resident investment vehicle unless entities have *fixed entitlements to all of the income and capital of the trust.

118-510(3)    
The total value of the assets of a company or trust is the total value of its assets (both current and non-current) as shown in:

(a) the last audited accounts prepared for the company or trust for the purposes of the Corporations Act 2001 that relates to a period ending less than 18 months before the acquisition time; or

(b) if there are no such audited accounts - a statement audited by the company's or trust's auditor showing that value as at a time no longer than 12 months before the acquisition time.