Income Tax Assessment Act 1997
CHAPTER 3
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SPECIALIST LIABILITY RULES
PART 3-6
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THE IMPUTATION SYSTEM
Division 208
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Exempting entities and former exempting entities
Subdivision 208-G
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Tax effects of distributions by exempting entities
Operative provisions
SECTION 208-215 Eligible employee share schemes 208-215(1)
An individual acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208-205(b) and 208-235(b) if:
(a) all the *ESS interests available for acquisition under the scheme relate to:
(b) immediately after the individual acquires the interest:
(c) the share is not a *non-equity share.
208-215(2)
An individual also acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208-205(b) and 208-235(b) if:
(a) the share is part of a stapled security; and
(b) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the beneficial interest in the stapled security.
208-215(3)
For the purposes of paragraph (1)(b), you are taken to:
(a) hold a beneficial interest in any *shares in the company that you can acquire under an *ESS interest that is a beneficial interest in a right to acquire a beneficial interest in such shares; and
(b) be in a position to cast votes as a result of holding that interest in those shares.
View history note
Hide history noteSECTION 208-215 Eligible employee share schemes 208-215(1)
An individual acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208-205(b) and 208-235(b) if:
(a) all the *ESS interests available for acquisition under the scheme relate to:
(i) ordinary shares; or
(ii) preference shares to which are attached substantially the same rights as are attached to ordinary shares; and
(b) immediately after the individual acquires the interest:
(i) he or she does not hold a beneficial interest in more than 10% of the shares in the company; and
(ii) he or she is not in a position to control, or to control the casting of, more than 10% of the maximum number of votes that might be cast at a general meeting of the company; and
(c) the share is not a *non-equity share.
208-215(2)
An individual also acquires a beneficial interest in a *share in a company under an *employee share scheme in circumstances that are relevant for the purposes of paragraphs 208-205(b) and 208-235(b) if:
(a) the share is part of a stapled security; and
(b) Subdivision 83A-B or 83A-C (about employee share schemes) applies to the beneficial interest in the stapled security.
208-215(3)
For the purposes of paragraph (1)(b), you are taken to:
(a) hold a beneficial interest in any *shares in the company that you can acquire under an *ESS interest that is a beneficial interest in a right to acquire a beneficial interest in such shares; and
(b) be in a position to cast votes as a result of holding that interest in those shares.
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