New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 4   Cross border employee shares or rights

Part 1   Amendments

Income Tax Assessment Act 1936

16   At the end of section 139D

Add:

(3) If:

(a) this section applies; and

(b) the taxpayer acquired the share or right while the associate was not an employee; and

(c) the associate subsequently became an employee while the taxpayer was holding the share or right;

the amount is included in the associate's assessable income in the year of income in which, after the acquisition, the associate first becomes an employee in respect of employment or services that affect the acquisition or holding of the share or right.

Note: Subsection 139GA(2) limits the meaning of employee in this subsection, so that engagement in foreign service is not of itself sufficient.