New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 4   Cross border employee shares or rights

Part 1   Amendments

Income Tax Assessment Act 1936

19   At the end of section 139E

Add:

(3) If:

(a) a taxpayer becomes an employee during a year of income (the employment year ); and

(b) before the employment year, the taxpayer had acquired a qualifying share or qualifying right, being an acquisition that occurred:

(i) while the taxpayer was not an employee; and

(ii) after the year of income (if any) in which the taxpayer last became an employee;

the taxpayer may make an election under this section that subsection 139B(2A) applies for each of the years of income before the employment year and after the year referred to in paragraph (b). The election covers each qualifying share or qualifying right acquired in any of those years by the taxpayer.

Note: Subsection 139GA(2) limits the meaning of employee in this subsection, so that engagement in foreign service is not of itself sufficient.

(4) An election under subsection (3) must be in writing in a form approved by the Commissioner and be made before the taxpayer lodges his or her return of income for the employment year, or within such further time as the Commissioner allows.