Commentary

D7.546 Gains from VCIPs—scope

Corporate tax
Corporate tax | Commentary

D7.546 Gains from VCIPs—scope

Corporate tax | Commentary

D7.546 Gains from VCIPs—scope

The rules in this division apply for accounting periods beginning before 1 January 2013. For accounting periods beginning on or after 1 January 2013 see Division D7.4.

The legislation applies to investments by a life insurance company's long-term insurance fund as a limited partner in a VCIP. To qualify as a VCIP, the partnership must meet three conditions:

  1.  

    (a)     its sole or main purpose, as evidenced by its partnership agreement or prospectus issued to potential investors, must be to invest in unquoted shares and securities;

  2.  

    (b)     it must not carry on a trade; and

  3.  

    (c)     no

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