Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:3_5
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 3 cl 5
Character Range: 49594–51382

5  At the end of Subdivision 104‑K
Add:

104‑255  Carried interests: CGT event K9

 (1) CGT event K9 happens if you become entitled to receive a payment of a *carried interest of a *general partner in a *VCLP or an *AFOF or a *limited partner in a *VCMP.

 (2) The time of the event is the time you become entitled to receive the payment.

 (3) You make a capital gain equal to the *capital proceeds from the *CGT event.

Note: You cannot make a capital loss.

Meaning of carried interest

 (4) The carried interest of a *general partner in a *VCLP or an *AFOF is the partner's entitlement to a distribution from the VCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP or AFOF.

 (5) The carried interest of a *limited partner in a *VCMP is the partner's entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP or AFOF in which the VCMP is a *general partner.

 (6) The *carried interest does not include:
 (a) any part of the partner's entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the *VCLP, *AFOF or *VCMP; or
 (b) any part of the partner's entitlement to that distribution that is attributable to the partner's *equity interest in the VCLP, AFOF or VCMP.

Meaning of payment of carried interest

 (7) Payment, of a *carried interest, includes:
 (a) a payment that is attributable to the carried interest; or
 (b) the giving of property in satisfaction of the carried interest: see section 103‑5; or
 (c) the giving of property in satisfaction of an entitlement that is attributable to the carried interest: see section 103‑5.