Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 210.135

  (1)   While recognising that an entity may anticipate * venture capital credits when * franking * distributions, the object of this section is to prevent those credits from being anticipated indefinitely by requiring the entity to reconcile its * venture capital sub - account at certain times and levying tax if the account is in * deficit.

  (2)   An entity is liable to pay * venture capital deficit tax imposed by the New Business Tax System (Venture Capital Deficit Tax) Act 2003 if its * venture capital sub - account is in * deficit at the end of an income year.

  (3)   An entity is liable to pay * venture capital deficit tax imposed by the New Business Tax System (Venture Capital Deficit Tax) Act 2003 if:

  (a)   it ceases to be a * PDF; and

  (b)   immediately before it ceases to be a PDF, its * venture capital sub - account is in * deficit.