Income Tax Assessment Act 1936

PART III - LIABILITY TO TAXATION

Former Division 13A - Employee share schemes

Former Subdivision C - Key concepts: employee share scheme, discount, cessation time, qualifying shares and rights and exemption conditions

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FORMER SECTION 139CA

139CA CESSATION TIME - SHARES
(Repealed by No 133 of 2009)

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History

S 139CA repealed by No 133 of 2009, s 3 and Sch 1 item 18, applicable in relation to the ESS interests mentioned in subsections 83A-5(1) and (2) of the Income Tax (Transitional Provisions) Act 1997 . S 139CA formerly read:

SECTION 139CA CESSATION TIME - SHARES
139CA(1)
The cessation time for a share is the time when the taxpayer acquires the share if:

(a) there is no restriction preventing the taxpayer from disposing of the share before a particular time; and

(b) the scheme under which the share was acquired did not have any conditions that could result in the taxpayer forfeiting ownership of the share.

139CA(2)
If subsection (1) does not apply, the cessation time for a share is the earliest of the following:

(a) the time when the taxpayer disposes of the share;

(b) subject to subsection (4), the later of:

(i) the time when any restriction preventing the taxpayer from disposing of the share ceases to have effect; and

(ii) the time when any condition that could result in the taxpayer forfeiting ownership of shares ceases to have effect;

(c) the time when the employment in respect of which the share was acquired ceases;

(d) the end of the 10 year period starting when the taxpayer acquired the share.
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History

S 139CA(2) amended by No 41 of 2005. No 41 of 2005, s 3 and Sch 3 item 22 contains the following application provision:

22 Application
(1)
The amendment is taken to have applied, to acquisitions of shares or rights on or after 1 July 2004.

(2)
In this item:
acquisition
, of a share or right, has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .

139CA(3)
For the purposes of subsection (2), a taxpayer only ceases the employment in respect of which the share was acquired when the taxpayer is no longer employed by any of the following:

(a) the employer of the taxpayer in that employment;

(b) a holding company of the employer;

(c) a subsidiary of the employer or of a holding company of the employer.

139CA(4)
Paragraph (2)(b) does not apply in relation to a share that, because of section 139DQ , is treated, for the purposes of this Division, as if it were a continuation of a share acquired under an employee share scheme.
Note:

Subdivision DA can affect whether the taxpayer is treated as having disposed of a share or ceased employment.

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History

S 139CA(4) inserted by No 41 of 2005. No 41 of 2005, s 3 and Sch 3 item 22 contains the following application provision:

22 Application
(1)
The amendment is taken to have applied, to acquisitions of shares or rights on or after 1 July 2004.

(2)
In this item:
acquisition
, of a share or right, has the same meaning as in Division 13A of Part III of the Income Tax Assessment Act 1936 .

S 139CA inserted by No 169 of 1995.

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