Document ID: chunk:federal_register_of_legislation:C2025C00029:section:7:p32
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 7 (pt 32/58)
Character Range: 2378171–2380704

superannuation fund for foreign residents
 (1) A fund is a superannuation fund for foreign residents at a time if:
 (a) at that time, it is:
 (i) an indefinitely continuing fund; and
 (ii) a provident, benefit, superannuation or retirement fund; and
 (b) it was established in a foreign country; and
 (c) it was established, and is maintained at that time, only to provide benefits for individuals who are not Australian residents; and
 (d) at that time, its central management and control is carried on outside Australia by entities none of whom is an Australian resident.
 (2) However, a fund is not a superannuation fund for foreign residents if:
 (a) an amount paid to the fund or set aside for the fund has been or can be deducted under this Act; or
 (b) a *tax offset has been allowed or is allowable for such an amount.

118‑525  Meaning of venture capital equity
 (1) A *CGT asset is venture capital equity for a *venture capital entity if it is a *share in a company or an interest in a trust where:
 (a) the company or trust is a *resident investment vehicle; and
 (b) the share or interest was issued or allotted to the entity by the company or trust; and
 (c) the entity was at risk in owning the share or interest in that it had no *arrangement (either before or after the share or interest was issued or allotted) as to:
 (i) the maintenance of the value of the share or interest; or
 (ii) any earnings or other return that might be made from owning it; or
 (iii) protection from commercial loss because of owning it.
Example: A company borrows money to purchase some shares. The terms of the loan include a term that, if the value of the shares falls below the amount of the loan, the company can repay the loan by transferring the shares to the lender.
 The company's ownership of the shares is not at risk, because there is no possibility that it can lose money under the transaction.
 (2) However, *shares or interests in the *resident investment vehicle issued or allotted to a *venture capital entity are not venture capital equity for the entity if:
 (a) one or more of these events happens:
 (i) a share or interest in the resident investment vehicle that was *acquired by some other entity before that issue or allotment is cancelled or redeemed; or
 (ii) there is a return of some of the capital of the resident investment vehicle that was acquired before that issue or allotment; or
 (iii) value is shifted out of a share or interest in that vehicle that was acquired before that issue or allotment; and
 (b)