Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 3/20)
Character Range: 3694106–3696753

no liability to pay *franking deficit tax arises on the relevant day—the amount of the *venture capital deficit tax; or
 (b) if a liability to pay franking deficit tax also arises on the relevant day—the amount of the venture capital deficit tax reduced by the amount of the franking deficit tax.

210‑150  Deferring venture capital deficit
 (1) The object of this section is to ensure that an entity does not avoid *venture capital deficit tax by deferring the time at which a *venture capital debit occurs.
 (2) An entity is taken to have *received a refund of income tax for an income year immediately before the end of that year for the purposes of subsection 210‑135(2) if:
 (a) the refund is paid within 3 months after the end of that year; and
 (b) the entity's *venture capital sub‑account would have been in *deficit, or in deficit to a greater extent, at the end of the previous income year if the refund had been received in the previous income year.
 (3) If an entity ceases to be a *PDF during an income year, it is taken to have *received a refund of income tax immediately before it ceased to be a PDF for the purposes of subsection 210‑135(3) if:
 (a) the refund is attributable to a period in the year during which the entity was a PDF; and
 (b) the refund is paid within 3 months after the entity ceases to be a PDF; and
 (c) the *venture capital sub‑account of the entity would have been in *deficit, or in deficit to a greater extent, immediately before it ceased to be a PDF if the refund had been received before it ceased to be a PDF.

Subdivision 210‑H—Effect of receiving a distribution franked with a venture capital credit

Guide to Subdivision 210‑H

210‑155  What this Subdivision is about
      A superannuation fund or other entity that deals with superannuation that receives a distribution franked with a venture capital credit is entitled to a tax offset equal to the credit.

Table of sections
210‑160 The significance of a venture capital credit
210‑165 Recipients for whom the venture capital credit is not significant

Operative provisions
210‑170 Tax offset for certain recipients of distributions franked with venture capital credits
210‑175 Amount of the tax offset
210‑180 Application of Division 207 where the recipient is entitled to a tax offset under section 210‑170

210‑160  The significance of a venture capital credit
 (1) The venture capital credit on a distribution is only significant in the hands of a relevant venture capital investor (basically a superannuation fund or other entity that deals with superannuation).
 (2) That investor receives a tax offset. In most cases, this will be equal