Tax Laws Amendment (Tax Incentives for Innovation) Act 2016 (54 of 2016)

Schedule 2   Venture capital investment

Part 5   Requirements for entities in which VCLPs, ESVCLPs and AFOFs invest

Income Tax Assessment Act 1997

25   Subsection 118-425(3) (note 3)

Repeal the note, substitute:

Note 3: A company that fails to meet at least 2 of the requirements can still be eligible if:

(a) Innovation Australia determines that the company's primary activity is not ineligible and the failure is temporary: see subsection (14); or

(b) all amounts invested in the company are appropriately invested within the first 6 months: see subsection (14A).

Innovation Australia may also determine that the activities of a controlled entity of the company are to be disregarded in applying this section to the company: see subsection (14B).