INCOME TAX ASSESSMENT ACT 1997
| CHAPTER 3 - SPECIALIST LIABILITY RULES |
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| PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS |
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History
Pt 3-1 inserted by No 46 of 1998. |
| Division 104 - CGT events |
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History
Div 104 inserted by No 46 of 1998. |
| Subdivision 104-K - Other CGT events |
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CGT event K9 happens if you become entitled to receive a *payment of a *carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF or a *limited partner in a *VCMP.
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History
S 104-255(1) amended by No 110 of 2014, s 3 and Sch 5 item 104, by substituting "*payment" for "payment", effective 16 October 2014. S 104-255(1) amended by No 78 of 2007, s 3 and Sch 8 item 110, by inserting ", an *ESVCLP" after "*VCLP", applicable to assessments for the 2007-2008 year of income and later years of income. |
The time of the event is the time you become entitled to receive the *payment.
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S 104-255(2) amended by No 110 of 2014, s 3 and Sch 5 item 104, by substituting "*payment" for "payment", effective 16 October 2014. |
You make a capital gain equal to the *capital proceeds from the *CGT event.
Note:You cannot make a capital loss.
Meaning of carried interest
The carried interest of a *general partner in a *VCLP, an *ESVCLP or an *AFOF is the partner's entitlement to a distribution from the VCLP, ESVCLP or AFOF, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF.
[CCH Note: Act No 78 of 2007, s 3 and Sch 8 item 111 inserts ", ESVCLP" after "VCLP", in s 104-255(4), however there are two instances of "VCLP" in s 104-255(4). CCH has inserted ", ESVCLP" in both instances as it is presumed that this was the intention.]
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History
S 104-255(4) amended by No 78 of 2007, s 3 and Sch 8 items 110 and 111, by inserting ", an *ESVCLP" after "*VCLP" and inserting ", ESVCLP" after "VCLP", applicable to assessments for the 2007-2008 year of income and later years of income. |
The carried interest of a *limited partner in a *VCMP is the partner's entitlement to a distribution from the VCMP, to the extent that the distribution is contingent upon the attainment of profits for the *limited partners in the VCLP, ESVCLP or AFOF in which the VCMP is a *general partner.
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S 104-255(5) amended by No 78 of 2007, s 3 and Sch 8 item 111, by inserting ", ESVCLP" after "VCLP", applicable to assessments for the 2007-2008 year of income and later years of income. |
The carried interest does not include:
(a) any part of the partner's entitlement to that distribution that is attributable to a fee (by whatever name called) for the management of the *VCLP, *ESVCLP, *AFOF or *VCMP; or
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(b) any part of the partner's entitlement to that distribution that is attributable to the partner's *equity interest in the VCLP, ESVCLP, AFOF or VCMP.
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History
S 104-255(6) amended by No 110 of 2014, s 3 and Sch 5 item 105, by substituting "carried interest" for "*carried interest", effective 16 October 2014. S 104-255(6) amended by No 78 of 2007, s 3 and Sch 8 items 112 and 113, by inserting ", *ESVCLP" after "*VCLP" in para (a) and inserting ", ESVCLP" after "VCLP" in para (b), applicable to assessments for the 2007-2008 year of income and later years of income. |
Meaning of payment of carried interest
Payment, of a *carried interest, includes:
(a) a payment that is attributable to the carried interest; or
(b) the giving of property in satisfaction of the carried interest: see section 103-5; or
(c) the giving of property in satisfaction of an entitlement that is attributable to the carried interest: see section 103-5.
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History
S 104-255 inserted by No 136 of 2002. |
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