Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 118.510

Meaning of resident investment vehicle

             (1)  A resident investment vehicle is a company that is an Australian resident, or a trust that is a * resident trust for CGT purposes, if:

                     (a)  the sum of:

                              (i)  the total value of the assets of the company or trust, and

                             (ii)  the total value of the assets of any company or trust * connected with the first company or trust; and

                            (iii)  the amount of the investment proposed to be made in venture capital equity in the company or trust by the relevant * venture capital entity;

                            is not more than $50,000,000 just before the time (the acquisition time ) when the relevant venture capital entity acquires venture capital equity in the company or trust; and

                     (b)  the primary activity of the company or trust is not, at any time, property development or land ownership.

             (2)  However, a trust is not a resident investment vehicle unless entities have * fixed entitlements to all of the income and capital of the trust.

             (3)  The total value of the assets of a company or trust is the total value of its assets (both current and non-current) as shown in:

                     (a)  the last audited accounts prepared for the company or trust for the purposes of the Corporations Act 2001 that relates to a period ending less than 18 months before the acquisition time; or

                     (b)  if there are no such audited accounts--a statement audited by the company's or trust's auditor showing that value as at a time no longer than 12 months before the acquisition time.



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