INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIA - CAPITAL GAINS AND CAPITAL LOSSES  

Division 10 - Rights to acquire shares  

SECTION 160ZYO   EXERCISE OF RIGHTS  

160ZYO(1)   [Deemed acquisition of shares or option]  

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

160ZYO(2)   [Consideration where rights exercised by shareholder]  

Subject to subsection (4), if the rights are 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 or the option, as the case may be, an amount equal to the amount paid in respect of the exercise of the rights.

160ZYO(3)   [Rights exercised by person other than the shareholder]  

Subject to subsection (4), 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 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 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.

160ZYO(4)   [Rights acquired before 20 September 1985]  

When the rights are exercised and -

(a) in the case of rights exercised by the shareholder - the rights are deemed, by virtue of section 160ZYM , to have been acquired by the shareholder before 20 September 1985; or

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

the shareholder or other person who exercised the rights 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 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.