INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 9 - Employees' shares - section 26AAC  

SECTION 160ZYJA   EMPLOYEE SHARE TRUSTS  

160ZYJA(1)   [Acquisition of shares]  

For the purposes of this Part, if:

(a) either:

(i) an amount is included in the assessable income of a taxpayer under section 26AAC as a result of the acquisition by the taxpayer of a share in a company; or

(ii) apart from subsection 26AAC(4F) , an amount would have been included in the assessable income of a taxpayer under section 26AAC as a result of the acquisition by the taxpayer of a share in a company; and

(b) the share was acquired by the taxpayer under the terms of a trust deed under which a trustee is required or authorised to sell, or otherwise to transfer, shares in a company to employees of the company or of another company or to relatives of those employees; and

(c) if an amount was paid by the taxpayer as consideration for the share - that amount is equal to or less than the indexed cost base to the trustee of the share;

this Part does not apply in respect of the disposal by the trustee of the share to the taxpayer.

160ZYJA(2)   [Right to acquire shares]  

For the purposes of this Part, if:

(a) any of the following apply:

(i) an amount is included in the assessable income of a taxpayer under subsection 26AAC(8C) as a result of the acquisition by the taxpayer of a right to acquire shares in a company; or

(ii) apart from subsection 26AAC(4F) , an amount would have been included in the assessable income of a taxpayer under subsection 26AAC(8C) as a result of the acquisition by the taxpayer of a right to acquire shares in a company; or

(iii) an amount is included in the assessable income of a taxpayer under subsection 26AAC(7) or (8) as a result of the disposal by the taxpayer or an associate of the taxpayer of a right to acquire shares in a company; or

(iv) both:

(A) an amount is included in the assessable income of a taxpayer under section 26AAC as a result of the acquisition by the taxpayer or an associate of the taxpayer of shares in a company; and

(B) the shares were acquired as a result of the exercise or operation of a right to acquire shares in the company; and

(b) the right was acquired, or originally acquired, by the taxpayer under the terms of a trust deed under which a trustee is required or authorised to sell, or otherwise to transfer, shares in a company to employees of the company or of another company or to relatives of those employees; and

(c) if an amount was paid by the taxpayer as consideration for the right - that amount is equal to or less than the indexed cost base to the trustee of the right;

this Part does not apply in respect of the disposal by the trustee of the right to the taxpayer.

160ZYJA(3)   [Acquisition by deceased estate]  

For the purposes of this Part, if:

(a) an amount is included in the assessable income of the trustee of the estate of a deceased person under subsection 26AAC(9) as a result of the acquisition by the trustee of shares in a company; and

(b) the shares were acquired as a result of the exercise or operation of a right to acquire shares in the company; and

(c) the right was acquired by the deceased person under the terms of a trust deed under which a trustee (in this subsection called the ``scheme trustee'' ) is required or authorised to sell, or otherwise to transfer, shares in a company to employees of the company or of another company or to relatives of those employees; and

(d) if an amount was paid by the deceased person as consideration for the right - that amount is equal to or less than the indexed cost base to the scheme trustee of the right;

this Part does not apply in respect of the disposal by the scheme trustee of the right to the deceased person.

160ZYJA(4)   [Indexed cost base]  

If:

(a) the trustee mentioned in subsection (1) disposed of the share to the taxpayer within 12 months after the share was acquired by the trustee; or

(b) the trustee mentioned in subsection (2) disposed of the right to the taxpayer within 12 months after the right was acquired by the trustee; or

(c) the scheme trustee mentioned in subsection (3) disposed of the right to the deceased person within 12 months after the right was acquired by the scheme trustee;

the reference in paragraph (1)(c), (2)(c) or (3)(d) to the indexed cost base to the trustee or to the scheme trustee, as the case may be, is to be read as a reference to the cost base to the trustee or to the scheme trustee, as the case requires.

160ZYJA(5)   [Amendment of assessments]  

Section 170 does not prevent the amendment of an assessment at any time for the purpose of giving effect to this section.

160ZYJA(6)   [Interpretation]  

In spite of section 160E , in this section:

"associate"
has the same meaning as in section 26AAC ;

"employee"
has the same meaning as in section 26AAC .