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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
New Business
Tax System (Venture Capital Deficit Tax) Bill
1999
No. ,
1999
(Treasury)
A Bill
for an Act to impose a tax in respect of venture capital sub-account deficits of
companies, and for related purposes
ISBN: 0642
426457
Contents
A Bill for an Act to impose a tax in respect of venture
capital sub-account deficits of companies, and for related
purposes
The Parliament of Australia enacts:
This Act may be cited as the New Business Tax System (Venture Capital
Deficit Tax) Act 1999.
This Act is taken to have commenced immediately after Schedule 3 to the
New Business Tax System (Capital Gains Tax) Act 1999 commences.
In this Act:
applicable general company tax rate means the rate specified
under paragraph (baa) of the definition of applicable general company tax
rate in section 160APA of the Income Tax Assessment Act 1936 in
relation to a company’s liability to pay class C franking deficit
tax.
deficit for a venture capital sub-account has the same
meaning as in Part IIIAA of the Income Tax Assessment Act 1936.
franking year has the same meaning as in Part IIIAA of the
Income Tax Assessment Act 1936.
PDF has the same meaning as in the Income Tax Assessment
Act 1936.
venture capital credits has the same meaning as in Part IIIAA
of the Income Tax Assessment Act 1936.
venture capital sub-account has the same meaning as in Part
IIIAA of the Income Tax Assessment Act 1936.
(1) Tax is imposed on a deficit in a PDF’s venture capital
sub-account at the end of a franking year.
Note: See section 160AQJAA of the Income Tax Assessment
Act 1936.
(2) For the purposes of this section, a refund of income tax in relation
to a PDF’s taxable income for a year of income that is received within 6
months after the end of the franking year that ends in or at the same time as
the year of income is taken to be received on the last day of the franking
year.
Note: The operation of this subsection may create, or
increase, a deficit in the PDF’s venture capital sub-account on the last
day of the franking year. This may make the PDF liable to, or increase its
liability to, venture capital deficit tax.
(1) If the deficit does not exceed 10% of the PDF’s total venture
capital credits arising during the franking year, the amount of tax is worked
out using the formula:
where:
company tax rate means the applicable general company
tax rate.
venture capital sub-account deficit means the amount
of the deficit in the venture capital sub-account.
(2) If the deficit exceeds 10% of the PDF’s total venture capital
credits arising during the franking year, the amount of tax is worked out using
the formula:
where:
company tax rate means the applicable general company
tax rate.
venture capital sub-account deficit means the amount
of the deficit in the venture capital sub-account.