(1) CGT event K9 happens if you become entitled to receive a * payment of a * carried interest of a * general partner in a * VCLP, an * ESVCLP or an * AFOF or a * limited partner in a * VCMP.
(2) The time of the event is the time you become entitled to receive the * payment.
(3) You make a capital gain equal to the * capital proceeds from the * CGT event.
Note: You cannot make a capital loss.
(4) The carried interest of a * general partner in a * VCLP, an * ESVCLP or an * AFOF is the partner's entitlement to a distribution from the VCLP, ESVCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the * limited partners in the VCLP, ESVCLP or AFOF.
(5) The carried interest of a * limited partner in a * VCMP is the partner's entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the * limited partners in the VCLP, ESVCLP or AFOF in which the VCMP is a * general partner.
(6) The carried interest does not include:
(a) any part of the partner's entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the * VCLP, * ESVCLP, * AFOF or * VCMP; or
(b) any part of the partner's entitlement to that distribution that is attributable to the partner's * equity interest in the VCLP, ESVCLP, AFOF or VCMP.
Meaning of payment of carried interest
(7) Payment , of a * carried interest, includes:
(a) a payment that is attributable to the carried interest; or
(b) the giving of property in satisfaction of the carried interest: see section 103 - 5; or
(c) the giving of property in satisfaction of an entitlement
that is attributable to the carried interest: see section 103 - 5.