S 130-110 repealed by No 133 of 2009, s 3 and Sch 1 item 77, applicable in relation to the ESS interests mentioned in subsections
83A-5(1)
and
(2)
of the
Income Tax (Transitional Provisions) Act 1997
. S 130-110 formerly read:
SECTION 130-110 Disposals by trustees
130-110(1)
A capital gain or a capital loss a trustee makes when a beneficiary becomes absolutely entitled to a share or right in a company is disregarded if these conditions are satisfied.
130-110(2)
The beneficiary must be:
(a)
a PAYE earner of the company or of another company (at the time the beneficiary first became beneficially entitled to the share or right); or
(b)
an associate or affiliate company of such a PAYE earner.
130-110(3)
The terms of the trust must have required or authorised the trustee to transfer the share or right to the PAYE earner or associate.
130-110(4)
The PAYE earner or associate must not have acquired the share or right for more than the cost base of the share or right (in the hands of the trustee) at the time of the transfer.
130-110(5)
Either:
(a)
there must have been an acquisition of a share or a right to acquire a share by the PAYE earner or associate under a scheme for the acquisition of shares by employees to which section
26AAC
of the
Income Tax Assessment Act 1936
applies; or
(b)
there must be a share or right that, because of section
26AAD
of that Act, was treated, for the purposes of section
26AAC
of that Act, as if it were a continuation of a share or right in a company.
History
S 130-110(5) substituted by No 147 of 2005.
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