Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 104 - CGT events  

Subdivision 104-C - End of a CGT asset  

SECTION 104-30   End of option to acquire shares etc.: CGT event C3  

104-30(1)    
CGT event C3 happens if an option a company or a trustee of a unit trust granted to an entity to *acquire a *CGT asset that is:

(a) *shares in the company or units in the unit trust; or

(b) *debentures of the company or unit trust;

ends in one of these ways:

(c) it is not exercised by the latest time for its exercise;

(d) it is cancelled;

(e) it is released or abandoned.

104-30(2)    
The time of the event is when the option ends.

104-30(3)    

The company or trustee makes a capital gain if the *capital proceeds from the grant of the option are more than the expenditure incurred in granting it. It makes a capital loss if those capital proceeds are less .

104-30(4)    
The expenditure can include giving property: see section 103-5 . However, it does not include an amount you have received as *recoupment of it and that is not included in your assessable income.

Exception

104-30(5)    
A *capital gain or *capital loss the company or trustee makes is disregarded if it granted the option before 20 September 1985.

Note:

This subsection is modified for the purpose of calculating the attributable income of a CFC: see section 418 of the Income Tax Assessment Act 1936 .