(1) An entity (except a partner in a partnership) is a venture capital entity if:
(a) it is a foreign resident; and
(b) it is a * superannuation fund for foreign residents; and
(c) it is not a * prescribed dual resident; and
(vi) the United States of America; or
(vii) some other foreign country prescribed by the regulations; and
(e) its income is exempt, or effectively exempt, from taxation in its country of residence.
(2) A partner in a partnership is a venture capital entity if:
(a) all of the partners in it are entities that are * venture capital entities under subsection (1); or
(b) the partnership is a * limited partnership and:
(i) all of the partners in it (except its general partner or managing partner) are venture capital entities under subsection (1); and
(ii) its general partner or managing partner has interests in
less than 10% of the total value of the assets of the partnership.