Income Tax Act 2007 section 257KC

"Shorter applicable period" and "longer applicable period"

Section 257KC defines two key time periods — the "shorter applicable period" and the "longer applicable period" — during which various eligibility conditions for social investment tax relief must be continuously met.

• The shorter applicable period runs from the investment date to the third anniversary of that date.
• The longer applicable period starts earlier — from the date the social enterprise was incorporated or established, or from one year before the investment date, whichever is later — and also ends on the third anniversary of the investment date.
• If any eligibility condition is breached before the end of the relevant applicable period, tax relief already given may be withdrawn or reduced.
• Investors do not need to wait until the end of either applicable period before claiming tax relief.