Document ID: chunk:federal_register_of_legislation:C2010C00617:clause:5_160ased:p1
Version: federal_register_of_legislation:C2010C00617
Segment Type: clause
Provision Reference: sch 5 cl 160ASED (pt 1/2)
Character Range: 74240–76856

160ASED  Venture capital credits and debits

Venture capital credits

 (1) A class C franking credit of a PDF is a venture capital credit of the PDF to the extent to which it is reasonably attributable to a payment of tax by the PDF in relation to a CGT event in relation to a qualifying SME investment of the PDF. This subsection does not apply to a class C franking credit that arises under subsection 160APL(3).

Note 1: Venture capital credits also arise under:

(a) section 160ASEE (carry‑forward of surplus from previous franking year); and

(b) section 160ASEF (lapsing of estimated venture capital debit determinations); and

(c) subsection 160ASEN(3) (receipt of refund that creates or increases venture capital sub‑account deficit).

Note 2: Subsection 160APL(3) exclusion—the venture capital sub‑account has its own provision for the carrying forward of end of franking year surpluses (see section 160ASEE).

 (2) In determining the extent to which the class C franking credit is reasonably attributable to a payment of tax by the PDF in relation to the CGT event, have regard to:
 (a) the extent to which the credit can reasonably be attributed to a payment of tax by the PDF in relation to its section 124ZZB SME assessable income for a year of income; and
 (b) the extent to which the section 124ZZB SME assessable income can reasonably be attributed to the CGT event.

 (3) Subject to subsection (4), the venture capital credit arises at the same time as the class C franking credit arises.

 (4) Before a PDF's assessment day (the assessment day) for a year of income, the PDF may elect to have the venture capital credits that would otherwise arise under subsection (1) during that year of income arise on the assessment day. If the PDF makes this election, the venture capital credits:
 (a) are taken not to have arisen on the day on which the relevant class C franking credits arose; and
 (b) are taken to arise on the assessment day.

 (5) The PDF's assessment day for a year of income is the earlier of:
 (a) the day on which the PDF furnishes its return of income for the year of income; or
 (b) the day on which the Commissioner makes an assessment of the amount of the PDF's taxable income for that year of income under section 166.

Venture capital debits

 (6) A class C franking debit of a PDF is a venture capital debit of the PDF to the extent to which it is reasonably attributable to a reduction amount in relation to a venture capital credit of the PDF.

Note: Venture capital debits also arise under:

(a) section 160ASEG (declaration is made attaching venture capital credits to a