Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

Division 59 - Particular amounts of non-assessable non-exempt income  

Operative provisions  

SECTION 59-40   Issue of rights  

59-40(1)    
The * market value, as at the time of issue (the issue time ), of rights issued to you:

(a) by a company to * acquire * shares in that company; or

(b) by a trustee of a unit trust to acquire units in that trust;

is not assessable income and is not * exempt income as at the issue time if the conditions in subsection (2) are satisfied.

59-40(2)    
The conditions are as follows:

(a) at the issue time, you must already own * shares in the company or units in the unit trust (the original interests );

(b) the rights must be issued to you because of your ownership of the original interests;

(c) the original interests and the rights must not be * revenue assets or * trading stock at the issue time;

(d) if you acquired a beneficial interest in the rights under an *employee share scheme - neither Subdivision 83A-B nor 83A-C (about employee share schemes) applies to the beneficial interest;

(e) the original interests and the rights must not be * traditional securities;

(f) the original interests must not be * convertible interests.