Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:27_3:p6
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 27 cl 3 (pt 6/6)
Character Range: 368641–370438

gives rise to venture capital credits. This means that when a PDF anticipates a venture capital credit, it is not only anticipating that income tax will be paid, but that income tax on income of that kind will be paid. Although income tax may, in fact, later be paid, it will not necessarily be income of the kind that would give rise to a venture capital credit. This results in franking credits arising even while the venture capital sub‑account remains in deficit.

 (3) The discrepancy between the franking account balance and the venture capital sub‑account balance can also arise because venture capital credits do not necessarily arise at the same time as the relevant franking credits and debits (see item 1 of the table in section 210‑105 and item 2 of the table in section 210‑120).

[This is the end of the Guide.]

Operative provisions

210‑100  Venture capital sub‑account

  Each *PDF has a venture capital sub‑account within its *franking account.

Note: The balance in the venture capital sub‑account on 1 July 2002 will be either nil or, if the entity has a venture capital surplus or deficit immediately before 1 July 2002 under the imputation scheme existing at that time, an amount calculated under the Income Tax (Transitional Provisions) Act 1997.

210‑105  Venture capital credits

  The table sets out when a credit arises in the *venture capital sub‑account of a *PDF. A credit in a PDF's venture capital sub‑account is called a venture capital credit.

Credits in the venture capital sub‑account
Item                                        If:                                                                                                                                    A credit of:                                                                       Arises on: