Taxation Laws Amendment (Venture Capital) Act 2002 (136 of 2002)

Schedule 2   Flow-through treatment, and related matters

Income Tax Assessment Act 1997

23   At the end of Division 195

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Subdivision 195-B - Limited partnerships

Guide to Subdivision 195-B

195-60 What this Subdivision is about

This Subdivision contains rules about the income tax treatment of limited partnerships that become, or cease to be, venture capital limited partnerships, Australian venture capital funds of funds or venture capital management partnerships.

It also allows the Commissioner to determine how to take account of limited partnerships having income years of less than 12 months when they become, or cease to be, venture capital limited partnerships, Australian venture capital funds of funds or venture capital management partnerships.

Table of sections

Operative provisions

195-65 Tax losses cannot be transferred to a VCLP, an AFOF or a VCMP

195-70 Previous tax losses can be deducted after ceasing to be a VCLP, an AFOF or a VCMP

195-75 Determinations to take account of income years of less than 12 months

[This is the end of the Guide.]

Operative provisions

195-65 Tax losses cannot be transferred to a VCLP, an AFOF or a VCMP

A *limited partnership’s *tax loss for a *loss year cannot be deducted in a later income year during which the partnership is a *VCLP, an *AFOF or a *VCMP.

195-70 Previous tax losses can be deducted after ceasing to be a VCLP, an AFOF or a VCMP

This Subdivision does not prevent a *limited partnership that has ceased to be a *VCLP, an *AFOF or a *VCMP from deducting, in an income year, a *tax loss for a *loss year that occurred before the partnership was a VCLP, AFOF or VCMP.

195-75 Determinations to take account of income years of less than 12 months

(1) The Commissioner may make a determination modifying the operation of one or more provisions of this Act in relation to limited partnerships whose accounting periods commence or end under section 18A of the Income Tax Assessment Act 1936.

(2) A determination can only be made in order to take account of the fact that such accounting periods are of less than 12 months’ duration.

(3) A determination under this section is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.