Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 26 - Some amounts you cannot deduct, or cannot deduct in full  

Operative provisions  

SECTION 26-68   Loss from disposal of eligible venture capital investments  

Partners in VCLPs and ESVCLPs

26-68(1)    
You cannot deduct under this Act your share of a loss made from the disposal or other realisation of an ^* eligible venture capital investment if:

(a) it is made by a ^* VCLP, or an *ESVCLP, that is ^* unconditionally registered; and

(b) were that disposal or other realisation to be a ^* disposal of a ^* CGT asset, your share of any ^* capital gain or ^* capital loss would be disregarded under section 118-405 or 118-407 .

Partners in AFOFs

26-68(2)    
You cannot deduct under this Act your share of a loss made from the disposal or other realisation of an ^* eligible venture capital investment if:

(a) it is made by:

(i) an ^* AFOF that is ^* unconditionally registered; or

(ii) a ^* VCLP, or an *ESVCLP, that is unconditionally registered and in which an AFOF that is ^* unconditionally registered is a partner; and

(b) were that disposal or other realisation to be a ^* disposal of a ^* CGT asset, your share of any ^* capital gain or ^* capital loss would be disregarded under section 118-410 .

Eligible venture capital investors

26-68(3)    
You cannot deduct under this Act a loss made from the disposal or other realisation of an ^* eligible venture capital investment if:

(a) you are an ^* eligible venture capital investor; and

(b) were that disposal or other realisation to be a ^* disposal of a ^* CGT asset, any ^* capital gain or ^* capital loss would be disregarded under section 118-415 .