Document ID: chunk:federal_register_of_legislation:C2010C00604:clause:27_5:p1
Version: federal_register_of_legislation:C2010C00604
Segment Type: clause
Provision Reference: sch 27 cl 5 (pt 1/5)
Character Range: 376285–379036

5                                          a *venture capital debit arises for the *PDF under section 210‑125 because its net venture capital credits for an income year exceed certain limits             the amount of the excess                                                                                                                                         the last day of the income year

210‑125  Venture capital debit where CGT limit is exceeded

 (1) A *venture capital debit arises for a *PDF where the PDF's net venture capital credits for the income year exceed whichever is the lesser of:
 (a) the PDF's CGT limit for that income year; and
 (b) the tax paid by the PDF on its *SME income component for that income year.

Net venture capital credits

 (2) The *PDF's net venture capital credits for the income year is:
where:

venture capital credits is the total *venture capital credits of the *PDF that relate to tax in relation to taxable income of that income year.

venture capital debits is the total *venture capital debits of the *PDF that relate to tax in relation to taxable income of that income year.

CGT limit

 (3) The *PDF's CGT limit for the income year is worked out using the formula:
where:

ordinary capital gains from all SME CGT events means the total of the *ordinary capital gains for the income year for *CGT events in relation to *SME investments of the *PDF.

ordinary capital gains from venture capital CGT events means the total of *ordinary capital gains for the income year for *CGT events in relation to shares in companies that are *qualifying SME investments.

SME tax rate is the tax rate applicable to the *SME income component of the *PDF for the income year.

Tax paid by the PDF on its SME income component

 (4) The tax paid by the PDF on its SME income component for the income year is the tax paid by the *PDF on its *SME income component after allowing *tax offsets referred to in section 4‑10.

210‑130  Venture capital surplus and deficit

 (1) A *PDF's *venture capital sub‑account is in surplus at a particular time if, at that time, the sum of the *venture capital credits in the account exceeds the sum of the *venture capital debits in the account. The amount of the venture capital surplus is the amount of the excess.

 (2) A *PDF's *venture capital sub‑account is in deficit at a particular time if, at that time, the sum of the *venture capital debits in the account exceeds the sum of the *venture capital credits in the account. The amount of the venture capital deficit is the amount of the excess.

 (3) A *PDF's *venture capital sub‑account may be in *deficit even though its *franking account as a whole is in *surplus. Similarly, a PDF's venture capital sub‑account may