Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-20 - TAX OFFSETS  

Division 61 - Generally applicable tax offsets  

Subdivision 61-P - ESVCLP tax offset  

Operative provisions

SECTION 61-765   Amount of the ESVCLP tax offset - general case  

61-765(1)    
If subsection 61-760(1) applies, the amount of the *tax offset for the income year is 10% of the lesser of:

(a) the sum of the amounts the partner contributes to the *ESVCLP during the income year, reduced by any amounts excluded under subsection (2); and

(b) the amount (the investment related amount ) worked out under subsection (3).

61-765(2)    
The following amounts are excluded for the purposes of paragraph (1)(a) in relation to the income year:

(a) any parts of a contribution the partner made to the *ESVCLP that the ESVCLP is, or will become, obliged to repay to the partner, whether or not:

(i) the obligation arises during the income year; or

(ii) the obligation arises only when the partner requests repayment;

(b) any parts of a contribution the partner made to the ESVCLP that, during the income year, are repaid to the partner within 12 months after the contribution was made;

(c) any parts of a contribution the partner made to the ESVCLP to the extent that they comprise a commitment to provide money or property in the future.

61-765(3)    
Work out the investment related amount as follows:

Partner ' s share × Sum of eligible venture capital investments

where:

partner ' s share
is the partner ' s share of the capital of the *ESVCLP at the end of the income year, expressed as a percentage of the entire capital of the ESVCLP.

sum of eligible venture capital investments
is the sum of:

(a) all the amounts of the *eligible venture capital investments made by the *ESVCLP during the period starting at the start of the income year and ending 2 months after the end of the income year; and

(b) all the incidental costs, incurred during that period, of making those investments; and

(c) all the administrative expenses, incurred during that period, associated with those investments.

61-765(4)    
For the purposes of paragraph (a) of the definition of sum of eligible venture capital investments in subsection (3), disregard the amounts of any *eligible venture capital investments that were taken into account in working out the amount of a *tax offset under this Subdivision for a preceding income year.