Converting the venture capital sub‑account balance to a tax paid basis—PDFs whose 2001‑02 franking year ends on 30 June 2002
210-10 Converting the venture capital sub‑account balance to a tax paid basis—PDFs whose 2001‑02 franking year ends on 30 June 2002
This section applies to PDFs whose 2001‑02 franking year ends on 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 (the 1936 Act).
If the PDF has a venture capital surplus under former Part IIIAA of the 1936 Act at the end of 30 June 2002:
no venture capital credit arose under former section 160ASEE of that Act because of the surplus; and
a venture capital credit arises on 1 July 2002 in the venture capital sub‑account established under section 210‑100 of the Income Tax Assessment Act 1997 for the PDF.
The amount of the venture capital credit is worked out using the following formula:
Start formula Amount of the venture capital surplus at the end of 30 June 2002 under the 1936 Act times start fraction 30 over 70 end fraction end formula
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