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

25   Before subsection 530A(1)

Insert:

(1A) If:

(a) a taxpayer acquired a qualifying share or right under an employee share scheme and has not made an election under section 139E covering the share or right; and

(b) for the whole of a notional accounting period of a FIF the following conditions are satisfied:

(i) the taxpayer holds the share or right;

(ii) the share or right is an interest in the FIF;

(iii) the cessation time for the share or right has not occurred;

the foreign investment fund income of the taxpayer, to the extent that it relates to the share or right, for the notional accounting period is zero.