• Specific Year
    Any

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.435 Special rule relating to investment in foreign resident holding companies

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.435

Special rule relating to investment in foreign resident holding companies

  (1)   A company that meets the requirements of subsections   118 - 425(6) and (7) is treated as also meeting the requirements of subsections   118 - 425(2), (3), (4), (4A) and (5) if:

  (a)   it is a resident of:

  (i)   Canada; or

  (ii)   France; or

  (iii)   Germany; or

  (iv)   Japan; or

  (v)   the United Kingdom; or

  (vi)   the United States of America; or

  (vii)   any other foreign country prescribed by the regulations; and

  (b)   it beneficially owns all the * shares in another company or all the units in a unit trust; and

  (c)   it does not carry on any * business other than to support the primary activity of the other company or unit trust; and

  (d)   the other company meets the requirements of subsections   118 - 425(2) to (7), or the unit trust meets the requirements of subsections   118 - 427(3) to (8), as the case requires.

  (2)   However, if:

  (a)   the company is so treated as meeting those requirements; and

  (b)   at any time within the period of 12 months after the day on which the first * eligible venture capital investment was made in the company:

  (i)   the other company ceases to be an Australian resident; or

  (ii)   the unit trust ceases to carry on * business in Australia;

    as the case requires;

then:

  (c)   any eligible venture capital investments already made in the company or unit trust cease to be eligible venture capital investments; and

  (d)   any further investments made in the company or unit trust are not eligible venture capital investments.

Download

No downloadable files available