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

Schedule 3   Capital gains tax treatment of carried interests

Income Tax Assessment Act 1997

13   After section 118-20

Insert:

118-21 Carried interests

CGT events relating to carried interests not to be treated as income

(1) The modifications in subsections (2) and (3) apply if *CGT event K9 happens in relation to your entitlement to receive a payment of the *carried interest of a *general partner in a *VCLP or an *AFOF or a *limited partner in a *VCMP.

(2) These provisions do not apply to the CGT event:

(a) sections 6-5 (about *ordinary income), 8-1 (about amounts you can deduct), 15-15 and 25-40 (about profit-making undertakings or plans) and 118-20 (reducing capital gains if amount otherwise assessable);

(b) sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).

(3) Section 6-10 (about *statutory income) does not apply to the *CGT event except so far as that section applies in relation to section 102-5 (about net capital gains).


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