Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.21

CGT events relating to carried interests not to be treated as income

  (1)   The modifications in subsections   (2) and (3) apply if * CGT event K9 happens in relation to your entitlement to receive a payment of the * carried interest of a * general partner in a * VCLP, an * ESVCLP or an * AFOF or a * limited partner in a * VCMP.

  (2)   These provisions do not apply to the CGT event:

  (a)   sections   6 - 5 (about * ordinary income), 8 - 1 (about amounts you can deduct), 15 - 15 and 25 - 40 (about profit - making undertakings or plans) and 118 - 20 (reducing capital gains if amount otherwise assessable);

  (b)   sections   25A and 52 of the Income Tax Assessment Act 1936 (about profit - making undertakings or schemes).

  (3)   Section   6 - 10 (about * statutory income) does not apply to the * CGT event except so far as that section applies in relation to section   102 - 5 (about net capital gains).