Document ID: chunk:federal_register_of_legislation:C2004A01073:clause:2_16
Version: federal_register_of_legislation:C2004A01073
Segment Type: clause
Provision Reference: sch 2 cl 16
Character Range: 41589–42922

16  At the end of section 94D
Add:

 (2) However, a partnership that is a VCLP, an AFOF or a venture capital management partnership cannot be a corporate limited partnership.

Note 1: This subsection can apply without the partnership meeting the applicable registration requirements under the Venture Capital Act 2002. It must be registered under that Act in order to be a VCLP or an AFOF, but it is possible for it to remain registered while the requirements are not met.

Note 2: VCLPs, AFOFs and VCMPs are taxed as ordinary partnerships under Division 5.

Note 3: If the partnership's registration as a VCLP or AFOF is unconditional, some partners' share in capital gains and losses from CGT events relating to some investments may be disregarded: see Subdivision 118‑F of the Income Tax Assessment Act 1997.

 (3) A venture capital management partnership is a limited partnership that:
 (a) is a general partner of either or both of the following:
 (i) one or more VCLPs;
 (ii) one or more AFOFs; and
 (b) only carries on activities that are related to being such a general partner.
A limited partnership ceases to be a venture capital management partnership if it ceases to meet the requirements of paragraphs (a) and (b).

Note: In this Act, the term "venture capital management partnership" is usually abbreviated to "VCMP".