The Australian Parliament passed 2 major pieces of legislation in mid December dealing with the exemption of capital gains tax ("CGT") in the case of disposal of non-resident venture capital equity investments in Australia. The laws were:
- Venture Capital Act 2002; and
- Taxation Laws Amendment (Venture Capital) Act 2002
The former Act includes rules relating to registration of certain non-resident venture capital entities in order to access CGT exemption and the latter amends the Income Tax Assessment Act 1997 by the introduction of a new subdivision 118F titled " Venture Capital Investment" containing the provisions relating to CGT exemption.
According to the existing subdivision 118G, the capital gains and losses of superannuation funds resident in Canada, France, Germany, Japan, the united Kingdom and the United States are disregarded for Australian tax purposes . This subdivision applies only to superannuation funds and only if their income is exempt from taxation in
