INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 10A - Rights to acquire units in a unit trust  

SECTION 160ZYQE   EXERCISE OF RIGHTS  

160ZYQE(1)   [Acquisition of new units or option deemed at time rights exercised]  

When the rights are exercised, whether by the unitholder or by a person who acquired the rights directly or indirectly as a result of the disposal of the rights by the unitholder, the person who exercised the rights shall be deemed, for the purposes of this Part, to have acquired the new units or the option, as the case may be, at the time when the rights were exercised.

160ZYQE(2)   [Rights exercised by unitholder]  

Subject to subsection (4), if the rights are exercised by the unitholder, the unitholder shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new units or the option, as the case may be, an amount equal to the amount paid in respect of the exercise of the rights.

160ZYQE(3)   [Rights exercised by person who acquired rights from disposal by unitholder]  

If the rights are exercised by a person who acquired the rights directly or indirectly as a result of the disposal of the rights by the unitholder, that person shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new units or the option, as the case may be, an amount equal to the sum of the consideration paid or given by that person for the acquisition of the rights and the amount paid in respect of the exercise of the rights.

160ZYQE(4)   [Where rights deemed to have been acquired before 20/9/85]  

Where:

(a) the rights are exercised by the unitholder; and

(b) the rights are deemed, by virtue of section 160ZYQC , to have been acquired by the unitholder before 20 September 1985;

the unitholder shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new units or the option, as the case may be, an amount equal to the sum of the market value of the rights at the time when the rights were exercised and the amount paid in respect of the exercise of the rights.