Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 210-125 Venture capital debit where CGT limit is exceeded 210-125(1)
A *venture capital debit arises for a *PDF where the PDF's net venture capital credits for the income year exceed whichever is the lesser of:
(a) the PDF's CGT limit for that income year; and
(b) the tax paid by the PDF on its *SME income component for that income year.
Net venture capital credits
210-125(2)
The *PDF's net venture capital credits for the income year is:
| Venture capital credits − Venture capital debits |
where:
venture capital credits
is the total *venture capital credits of the *PDF that relate to tax in relation to taxable income of that income year.
venture capital debits
is the total *venture capital debits of the *PDF that relate to tax in relation to taxable income of that income year.
CGT limit
210-125(3)
The *PDF's CGT limit for the income year is worked out using the formula:
| Ordinary capital gains from
venture capital CGT events Ordinary capital gains from all SME CGT events |
× | *Section 124ZZB SME
assessable income |
× SME tax rate |
where:
ordinary capital gains from all SME CGT events
means the total of the *ordinary capital gains for the income year for *CGT events in relation to *SME investments of the *PDF.
ordinary capital gains from venture capital CGT events
means the total of *ordinary capital gains for the income year for *CGT events in relation to shares in companies that are *qualifying SME investments.
SME tax rate
is the tax rate applicable to the *SME income component of the *PDF for the income year.
Tax paid by the PDF on its SME income component
210-125(4)
The tax paid by the PDF on its SME income component for the income year is the tax paid by the *PDF on its *SME income component after allowing *tax offsets referred to in section 4-10 .
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