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INCOME TAX ASSESSMENT ACT 1997 - SECT 51.54

Gain or profit from disposal of eligible venture capital investments

Partners in VCLPs and ESVCLPs

             (1)  An entity's share of any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if:

                     (a)  it is made by a * VCLP, or an * ESVCLP, that is * unconditionally registered; and

                     (b)  were that disposal or other realisation to be a * disposal of a * CGT asset, the entity's share of any * capital gain or * capital loss would be disregarded under section 118-405 or 118-407.

          (1A)  An entity's share of any gain or profit made:

                     (a)  by an * ESVCLP that is * unconditionally registered; and

                     (b)  from the disposal or other realisation of an * eligible venture capital investment;

is exempt from income tax to the extent that, were that disposal or other realisation to be a * disposal of a * CGT asset, the equivalent * capital gain arising from the * CGT event would be disregarded because of a partial exemption from the CGT event under section 118-408.

Partners in AFOFs

             (2)  An entity's share of any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if:

                     (a)  it is made by:

                              (i)  an * AFOF that is * unconditionally registered; or

                             (ii)  a * VCLP, or an * ESVCLP, that is unconditionally registered and in which an AFOF that is * unconditionally registered is a partner; and

                     (b)  were that disposal or other realisation to be a * disposal of a * CGT asset, the entity's share of any * capital gain or * capital loss would be disregarded under section 118- 410.

Eligible venture capital investors

             (3)  Any gain or profit made from the disposal or other realisation of an * eligible venture capital investment is exempt from income tax if:

                     (a)  you are an * eligible venture capital investor; and

                     (b)  were that disposal or other realisation to be a * disposal of a * CGT asset, any * capital gain or * capital loss would be disregarded under section 118- 415.



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