INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 11 - Company-issued options to shareholders to acquire unissued shares  

SECTION 160ZYV   EXERCISE OF OPTION  

160ZYV(1)   [Deemed acquisition by person exercising option]  

When the option is exercised, whether by the shareholder or by a person who acquired the option directly or indirectly as a result of the disposal of the option by the shareholder, the person who exercised the option shall be deemed, for the purposes of this Part, to have acquired the new shares at the time when the option was exercised.

160ZYV(2)   [Option exercised by shareholder]  

Subject to subsection (4), if the option is exercised by the shareholder, the shareholder shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new shares an amount equal to the amount paid in respect of the exercise of the option.

160ZYV(3)   [Option exercised by person other than shareholder]  

Subject to subsection (4), if the option is exercised by a person who acquired the option directly or indirectly as a result of the disposal of the option by the shareholder, 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 shares an amount equal to the sum of the consideration paid or given by that person for the acquisition of the option and the amount paid in respect of the exercise of the option.

160ZYV(4)   [Option acquired prior to 20 September 1985]  

When the option is exercised and -

(a) in the case of an option exercised by the shareholder - the option is deemed, by virtue of section 160ZYT , to have been acquired by the shareholder before 20 September 1985; or

(b) in the case of an option exercised by a person who acquired the option directly or indirectly as a result of the disposal of the option by the shareholder - that person acquired the option before 20 September 1985,

the shareholder or other person who exercised the option shall be deemed, for the purposes of this Part, to have paid or given as consideration in respect of the acquisition of the new shares an amount equal to the sum of the market value of the option at the time when the option is exercised and the amount paid in respect of the exercise of the option.