Tax Laws Amendment (2008 Measures No. 3) Act 2008 (91 of 2008)

Schedule 1 Shareholder and unitholder rights

Add:

59-40 Issue of rights

(1) The*market value, as at the time of issue (the issue time ), of rights issued to you:

(a) by a company to*acquire*shares in that company; or

(b) by a trustee of a unit trust to acquire units in that trust;

is not assessable income and is not*exempt income as at the issue time if the conditions in subsection (2) are satisfied.

(2) The conditions are as follows:

(a) at the issue time, you must already own*shares in the company or units in the unit trust (the original interests );

(b) the rights must be issued to you because of your ownership of the original interests;

(d) the rights must not have been acquired (within the meaning of section 139G of theIncome Tax Assessment Act 1936) under an*employee share scheme;

(e) the original interests and the rights must not be*traditional securities;

(f) the original interests must not be*convertible interests.