Taxation Laws Amendment Act (No. 2) 1995 (169 of 1995)

Schedule 2   EMPLOYEE SHARE SCHEMES

Part 1   INCOME TAX ASSESSMENT ACT 1936

Division 2   Other amendments of the Income Tax Assessment Act 1936

7   After Division 9 of Part IIIA

Insert:

"Division 9A-Employees' shares-Division 13A of Part III

Shares or rights under employee share scheme

"160ZYJB.(1) This section applies if an amount is, or apart from

section 139BA would be, included in a taxpayer's assessable income

under Division 13A of Part III as a result of the taxpayer acquiring a

share or right.

"(2) If subsection 139CC(2) applies, the taxpayer is taken for the

purposes of this Part to have paid, at the time when the share or

right is acquired by the taxpayer, as consideration in respect of the

acquisition, the greater of:

(a) the amount paid by the taxpayer as consideration in respect of

the acquisition; and

(b) the market value of the share or right at the time of the

acquisition.

Note: Market Value is defined in Subdivision F of Division 13A of Part

III.

"(3) If subsection 139CC(3) applies, this Part does not apply in

respect of the disposal mentioned in that subsection.

"(4) If subsection 139CC(4) applies, the taxpayer is taken for the

purposes of this Part to have paid, at the cessation time, an amount

equal to the market value of the share or right at that time as

consideration in respect of the acquisition.

Note: Cessation time is defined in sections 139CA and 139CB.

Shares or rights under employee share scheme-associates

"160ZYJC.(1) This section applies if an amount is included in a

taxpayer's assessable income under Division 13A of Part III as a

result of an associate of the taxpayer acquiring a share or right.

Note: Associate is defined in section 139GE.

"(2) The associate is taken for the purposes of this Part to have

paid, at the time when the share or right is acquired by the

associate, as consideration in respect of the acquisition, the greater

of:

(a) the amount paid by the associate as consideration in respect of

the acquisition; and

(b) the market value of the share or right at the time of the

acquisition.

Employee share trusts

"160ZYJD.(1) For the purposes of this Part, if:

(a) an amount is, or apart from section 139BA would be, included in

a taxpayer's assessable income under Division 13A of Part III as a

result of the acquisition by the taxpayer of a share or right in a

company; and

(b) the share or right was acquired by the taxpayer under the terms

of a trust deed under which the trustee is required or authorised to

sell, or otherwise to transfer, the share, or right, to:

(i) an employee of the company or of another company;

(ii) an associate of such an employee; and

(c) either no amount was paid by the taxpayer as consideration for

the share or, if an amount was paid, that amount is equal to or less

than the indexed cost base to the trustee of the share or right;

this Part does not apply in respect of the disposal by the trustee of

the share or right to the taxpayer.

Note: Employee is defined in section 139GA.

"(2) If the trust disposed of the share or right within 12 months

after the share or right was acquired by the trust, the reference in

paragraph (1)(c) to the indexed cost base to the trustee is to be read

as a reference to the cost base to the trustee.

Terms have same meaning as in Division 13A of Part III

"160ZYJE. Despite section 160E, associate, cessation time, employee

and market value have the same meaning in this Division as in Division

13 of Part III.".