Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:1_6:p6
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 6/10)
Character Range: 19717–22351

its country of residence, but the entity's income is taxed to its members according to their interests in the entity; and
 (b) the entity was established by or under a law in force in, or in a part of:
 (i) Canada; or
 (ii) France; or
 (iii) Germany; or
 (iv) Japan; or
 (v) the United Kingdom; or
 (vi) the United States of America; or
 (vii) any other foreign country prescribed by the regulations; and
 (c) the entity is a resident of a country referred to in paragraph (b); and
 (d) the entity is not a *general partner of a *VCLP.

 (6) The requirements that a partner must meet for the purposes of paragraph (1)(c) are that:
 (a) the partner must be a resident of:
 (i) Canada; or
 (ii) Finland; or
 (iii) France; or
 (iv) Germany; or
 (v) Italy; or
 (vi) Japan; or
 (vii) the Netherlands (excluding the Netherlands Antilles); or
 (viii) New Zealand; or
 (ix) Norway; or
 (x) Sweden; or
 (xi) Taiwan; or
 (xii) the United Kingdom; or
 (xiii) the United States of America; or
 (xiv) any other foreign country prescribed by the regulations; and
 (b) the partner must not be:
 (i) a *general partner of a *VCLP; or
 (ii) a *tax‑exempt non‑resident; or
 (iii) a *foreign venture capital fund of funds.

 (7) A trust is not an eligible venture capital partner if an Australian resident:
 (a) is or is likely to become presently entitled, for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936, to; or
 (b) has or is likely to have an individual interest, for the purposes of Division 5 of Part III of the Income Tax Assessment Act 1936, in;
a share of income of the trust, either directly or indirectly through one or more interposed partnerships or trusts.

118‑425  Meaning of eligible venture capital investment

Requirements for an eligible venture capital investment

 (1) An investment is an eligible venture capital investment if:
 (a) it is *at risk; and
 (b) it is either:
 (i) an acquisition of *shares in a company; or
 (ii) an acquisition of options (including warrants) originally issued by a company to acquire shares in the company; and
 (c) the company meets the requirements of subsections (2) to (7); and
 (d) the sum of:
 (i) the total amount that the partnership has invested in all the *equity interests and *debt interests that the partnership owns in the company; and
 (ii) the total amount that the partnership has invested in all the equity interests and debt interests that the partnership owns in any entities that are *connected entities of the company;
  does not exceed 30% of the partnership's *committed capital.

Location within Australia

 (2) The company:
 (a) must, at