Commonwealth of Australia Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.21

CGT events relating to carried interests not to be treated as income

             (1)  The modifications in subsections (2) and (3) apply if * CGT event K9 happens in relation to your entitlement to receive a payment of the * carried interest of a * general partner in a * VCLP, an * ESVCLP or an * AFOF or a * limited partner in a * VCMP.

             (2)  These provisions do not apply to the CGT event:

                     (a)  sections 6-5 (about * ordinary income), 8- 1 (about amounts you can deduct), 15-15 and 25-40 (about profit-making undertakings or plans) and 118-20 (reducing capital gains if amount otherwise assessable);

                     (b)  sections 25A and 52 of the Income Tax Assessment Act 1936 (about profit-making undertakings or schemes).

             (3)  Section 6-10 (about * statutory income) does not apply to the * CGT event except so far as that section applies in relation to section 102-5 (about net capital gains).