Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p10
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 10/58)
Character Range: 2324236–2326896

that you made that is an *eligible venture capital investment; and
 (b) you were an *eligible venture capital investor when you made the investment; and
 (c) at the time of the CGT event:
 (i) you owned the investment; and
 (ii) you had owned the investment for at least 12 months; and
 (iii) you were an eligible venture capital investor.

Meaning of eligible venture capital investor
 (2) An entity is an eligible venture capital investor at a particular time if, at that time, the entity:
 (a) is a *tax‑exempt foreign resident; and
 (b) is registered under Part 3 of the Venture Capital Act 2002.

Effect of converting convertible notes etc.
 (3) An entity that acquired a *share in a company by converting a *convertible note, or a convertible preference share, issued by the company is treated, for the purposes of subparagraph (1)(c)(ii), as having owned the share from the time when it last acquired the convertible note or convertible preference share.
 (4) An entity that acquired a unit in a unit trust by converting a *convertible note issued by or on behalf of the trustee of the unit trust is treated, for the purposes of subparagraph (1)(c)(ii), as having owned the unit from the time when it last acquired the convertible note.
 (5) Subsection (3) or (4) applies whether or not the acquisition of the *convertible note, or convertible preference share, was an *eligible venture capital investment.
 (6) An entity that converts a *convertible note into a share or a unit is treated, for the purposes of subparagraph (1)(c)(ii), as continuing to own the convertible note until the entity no longer owns the share or unit.

118‑420  Meaning of eligible venture capital partner etc.
 (1) A partner in a *limited partnership is an eligible venture capital partner if:
 (a) the partner is a *tax‑exempt foreign resident; or
 (b) the partner is a *foreign venture capital fund of funds, and the sum of:
 (i) the partner's *committed capital in the partnership; and
 (ii) the sum of the amounts of committed capital in the partnership of any entities that are *connected entities of the partner;
  does not exceed 30% of the partnership's committed capital; or
 (ba) the partner is a *widely held foreign venture capital fund of funds; or
 (c) the partner is a foreign resident who is not a *general partner of a *VCLP or an *ESVCLP and is neither a *tax‑exempt foreign resident nor a *foreign venture capital fund of funds, and the sum of:
 (i) the partner's committed capital in the partnership; and
 (ii) the sum of the amounts of committed capital in the partnership of any entities that are connected entities of the partner;
  is less than 10% of